Inspiration
Borrow and Lending is always done by using a protocol which is not always fully utilized and usually has limited collateral ratio and non-adjustable profit. Why not people borrow/lend directly to each other? It'll make market for borrowers and lenders even more free and allows them to take more risk to get more reward and enables the profit to change with market volatility upon peoples perception.
What it does
It is an exchange which people can request for lend and borrow by setting the amount and the hourly interest rate they are willing for. If they get matched a debt is created between these two.
Liquidators keep watching users and liquid if their collateral lose it's value. Also crankers help the matching engine to process it's events.
How we built it
It is built using Anchor on top of Serum Core. For pricing it uses Pyth as oracle. (for hackathon we used a stub oracle to manually test it but Pyth support is implemented)
Challenges we ran into
Poor documentation of different tools & libraries in the ecosystem. Serum Core is in early stages.
Accomplishments that we're proud of
This idea can redefine what we already have in mind about borrowing and lending and we hope that it can make the borrow/lend ecosystem much more dynamic and competitive than before.
Credit
The idea was raised by Marc Tillement (KemarTiti), one of Pyth community leaders, in Pyth Discord. He subsequently helped me to get better understanding of this idea.
What's next for BaLeX
- Enable multiple markets (for multiple over-collateral ratios)
- Improve Pricing (taking account tokens and pyth exp and using fp32)
- Add fee mechanism (currently 0) (More on githubs ToDo)
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