Assets

Supplying Assets

Woodrip consolidates the assets of all users to form an aggregated digital asset market, also known as the money market. Similar to the Compound protocol, once a user supplies their assets to the protocol, these assets become fungible. Liquidity providers or lenders can withdraw their supplied assets at any time without waiting for any specific loan to mature.

The asset balance of the money market accumulates interest based on the specific supply rate of the asset. Users are free to view their balance at any time. When users update their balances through a transaction, the accrued interest is transferred to them.

Long-term investors can supply their assets to the money market as an additional source of return. For instance, users owning native tokens can supply their tokens to the money market on Woodrip, earning interest without having to manage their assets, fulfill loan requests, or take speculative risks.

Borrowing Assets

Woodrip permits users to borrow assets by depositing trusted collateral. Users have full rights to the borrowed assets and can use them freely anywhere they are accepted. There's no need to negotiate maturity dates, interest rates, and so on. If the assets are cross-chain assets, they can be integrated into other blockchain protocols through cross-chain asset protocols.

Similar to the asset supply, each money market has a floating interest rate, determined by market forces, which sets the borrowing cost of each asset.

To mitigate market risks, Woodrip sets the collateral factor of various asset types according to their Asset Risk Level. Assets cannot be over-collateralized. The borrowing capacity is dynamically calculated for each account, and each account can only borrow assets within its borrowing capacity. Collateral cannot be withdrawn as long as the borrowing is ongoing. However, even if user assets are used as collateral, the users will still receive deposit interest.

Simultaneously, an account's borrowing capacity cannot exceed its balance value, known as the collateral rate. This rate is determined by the user's ratio between asset supply and asset borrow. If the user's collateral rate drops below a certain threshold, liquidation occurs. To avoid liquidation, users can partially or completely repay their borrowed assets and/or supply more assets into the money market.

Asset Risk Level	Collateral Factor	Assets
Stable Coin	130%	USDT, USDC, DAI, etc. Tokens with high market caps, high amounts of tokens distribution with exceptional market acceptance, trading depth & volume Market Cap > $50mn
Low Risk	140%	BTC, ETH and OKB, HT, BNB platform tokens
Medium Risk	150%	XRP, BCH, BSV, LTC, EOS, AD, etc. Tokens with Top 10 Market Caps
High Risk	160%	Tokens other than listed above