Token Parameters
Each token supported by the DEX has a set of parameters that define how it can be used as collateral, borrowed, and traded. These parameters are set in the protocol configuration and are critical for risk management and user experience.
Token Parameters Explained
| Parameter | Description | Example (BTC) |
|---|---|---|
| name | The token symbol or name. | BTC |
| price_index | The oracle price index used to fetch the token's price. | BTC/USD |
| collateral_factor | The percentage of the token's value that counts as collateral (e.g., 0.9 = 90%). | 0.95 |
| borrow_initial_factor | The required collateral ratio to open a borrow (e.g., 1.2 = 120%). | 1.2 |
| borrow_maintenance_factor | The minimum collateral ratio to avoid liquidation (e.g., 1.1 = 110%). | 1.1 |
| liquidation_penalty | The penalty (as a percentage) applied to collateral when liquidated. | 0.01 (1%) |
| origination_fee | The fee (as a percentage) charged when opening a borrow position. | 0.001 (0.1%) |
| contract_address | The on-chain address/type of the token. | 0x1::aptos_coin::AptosCoin |
| enabled | Whether the token is enabled for trading/collateral/borrowing. | true |
| token_decimals | Number of decimals for the token. | 8 |
Example: BTC Token Configuration
text
name: BTC
price_index: BTC
collateral_factor: 0.95
borrow_initial_factor: 1.2
borrow_maintenance_factor: 1.1
liquidation_penalty: 0.01
origination_fee: 0.001
contract_address: 0x1::aptos_coin::AptosCoin
enabled: true
token_decimals: 8How These Parameters Are Used
- Collateral Factor:
Determines how much of your BTC balance counts toward your margin/collateral. - Borrow Factors:
Set the minimum collateral required to open and maintain a borrow position. - Liquidation Penalty:
Applied if your position is liquidated due to insufficient collateral. - Origination Fee:
Charged when you open a new borrow. - Enabled:
Only enabled tokens can be used for trading, collateral, or borrowing.
Summary
- USDC is always valued at 1 USD.
- All other tokens use a high-frequency heartbeat oracle for price data.
- This design ensures accurate, up-to-date, and reliable pricing for all DEX operations.