Fortress Mega Updates — Jump Rate Model, Increased Collateral Factors, More Wallet Options, FTS vault, and the Liquidator Portal
Fortress, the decentralized money market from the Jetfuel Finance team has undergone a number of updates to strengthen & improve the protocol. Read below to understand the updates the team has pushed.
Jump Rate Model
FIP4 upgrade the interest rate model of the most used assets on Fortress from the Linear Rates Interest Rate Model to the Jump Rate (Kinked Rate Model) on Nov 17th. The FIP4 governance proposal can be seen here: https://bsc.fortress.loans/vote/proposal/4
BTCB, ETH, BNB, USDC, BUSD, USDT, & DAI were upgraded to the Jump Rate Model with a kink at 70% utilization. The Kink rapidly increases the borrow rates above 70% utilization. The increased borrow rates also dramatically increase the supply rates.
Advantages of the Jump Rate Model
The Jump Rate (kink) is used to incentivize less borrowing of assets at the top of the utilization chart. Once utilization crosses 70%, the interest rates quickly increase up to 51.7% at 100% utilization. The high cost of borrowing should encourage borrowers to repay their loans or more suppliers to come in to increase the liquidity of the asset pool.
Increased Collateral Factors
You asked and we listened!
On Nov 3rd FIP3 was executed and USDC, USDT, BUSD, DAI, BTCB, ETH, BNB collateral factors were increased from 60% to 70%. The increased collateral factor allows suppliers to utilize more of their deposits with higher borrowing limits.
For example, A supplier with $1,000 of USDT previously was limited to borrow a maximum of 60% or $600 of an asset against his supplied assets. Now the same supplier is able to borrow a maximum of $700 against the same $USDT supplied.
Below is a chart of the assets, interest rate models, and collateral factors for Fortress Assets.
More Wallet Options
The developer team at Fortress was hard at work improving access to the protocol. More wallet options allow more lenders and borrowers to access the site.
The following wallets are now supported at Fortress Binance Smart Chain!
- Trust Wallet
- Wallet Connect
- Binance Chain Wallet
The FTS vault is back and better than ever! You can stake your FTS to earn BTC, WBNB, and USDT AT THE SAME TIME!! APRs at the time of publication is 203%.
FTS deposits are subject to a 7 day waiting period before withdraws are permitted. Any subsequent deposits will reset the withdraw waiting period.
Head to https://bsc.fortress.loans/fts-vault to take advantage of the triple earnings with high APR!
The newest addition to the Fortress Protocol is the public Liquidator Portal. The liquidator portal allows anyone to become a Fortress Liquidator. Liquidators serve an extremely important role in keeping the Fortress protocol safe from bad debt by closing out unhealthy or overborrowed accounts.
Anytime an account’s Borrow Limit goes over 100%, the account has borrowed more assets than allowed by the protocol. In this case, the supplied collateral may not be sufficient to cover the debt from the borrower. If liquidators were not present, bad debts could exist at Fortress. Bad debt is a debt without over-collateralization backing it.
Liquidators repay the overborrowed asset and seize the supplied collateral with a 10% bonus.
Steps to liquidate an unhealthy Fortress account
- Go to https://bsc.fortress.loans/liquidator
- Find an account with a Health Rating of less than 1 and click on it. Eligible accounts will automatically be at the top of the account list and will be in red.
- The Liquidator Dashboard will display the information for the unhealthy account.
- Be sure to have enough of the at-risk asset to repay.
- If you need more of the asset please go to https://exchange.jetswap.finance/#/swap or https://app.1inch.io/ and swap for the asset
- Click “Max” on “Amount you want to repay in “insert asset”
- Click Liquidate
- You will have paid off the debt and seized the collateral. The collateral received will be an f token from Fortress which can be redeemed for the supplied asset.