Participant Roles

Borrower

  • Supplies BONK or other assets as collateral.

  • Can borrow according to the LTV set by the limiter module.

  • Pays the borrowing fees consisting of:

  1. Interest Rate

  2. Safety Fee - goes to Moon Module

  3. Optional Deposit Fee (in the future)

Borrowing fees as a whole go to the platform.

Advantages for Borrowers:

  • Zero liquidation risk within the first epoch (first 8 hours).

  • Increased capital efficiency for collateralized volatile assets.

Lender

  • Supplies USDC or SOL to be put up for borrowing.

Advantages for Lenders

  • Lenders get higher yields because more people are borrowing, thanks to the Moon Module's downside protection.

Foundations

  • Partner protocols with tokens that can be used on BlonkFi as collateral.

  • Sells Put Options to the BlonkFi to limit risk for the lenders.

  • Fees for these options are set by the Moon Module.

Advantages for Foundations

  • Selling Put Options to BlonkFi's Moon Module is an additional revenue source for Partner Foundations.

BlonkFi

  • Facilitates transactions.

  • Sets rates in the Moon Module and LTV in the limiter module.

  • Establishes partnerships with foundations to add additional participants to the Moon Module.

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