🔍Key Features

Joule Finance's key features include isolated lending positions, variable interest rates, and Efficiency Mode for optimized DeFi lending and borrowing.

Isolated Lending Positions: The platform isolates each lending and borrowing activity, making every position's risk independent, even with identical collateral. For example, borrowing USDC with stAPT collateral is separate from using stAPT to borrow APT. A minor depeg in stAPT could liquidate the latter but not affect the former. Unlike typical money markets that lump all a user's positions together, risking broad liquidation.

Variable Interest Rate: Interest rates within Joule Finance are subject to fluctuations based on the capital availability and utilization in each lending market. These rates dictate the amount of interest borrowers need to repay on their loans, consequently impacting the distribution of interest earned by liquidity providers in that market. Just like in other DeFi lending platforms, interest rates in a specific lending market will be low when there is ample liquidity and available capital, aiming to promote borrowing. Conversely, when capital is limited in a lending market, interest rates will rise to incentivize debt repayments and enhance the liquidity of that market.

Efficiency Mode: Maximizing capital efficiency involves empowering users to optimize their asset utilization. Joule Finance introduces innovative features to enhance capital efficiency, offering users greater flexibility in borrowing. Through Efficiency Mode, specific asset relationships are leveraged, enabling users to engage more effectively in borrowing and lending activities when utilizing related assets together. For instance: 1. Using USDC as collateral and borrowing USDT for better LTV ratio 2. Using APT as collateral and borrowing amAPT for better LTV ratio