Advanced UX Features & Functionality
SAP
What are Special Asset Pairs(S.A.P.s)?
Special asset pairs are pairs of assets with distinct collateral weight(CW) and borrowing limit(BL) settings when one is being used as collateral to borrow the other asset(s). These pairs offer unique opportunities for borrowers to obtain higher borrowing limits and optimize capital efficiency on UX.
Examples of special asset pairs: [ATOM/stATOM, OSMO/stOSMO, IST/USK]
How does the collateral weight of Special Asset Pairs impact borrowing power?
The collateral weight is a measure of how much influence a particular asset pair has on the overall borrowing capacity. Higher collateral weights result in increased borrowing power, allowing users to access a larger pool of funds.
How do special asset pairs affect borrowing on UX?
Special asset pairs can result in the most borrowing capacity and maximum capital efficiency between specific asset pairs.
What conditions have to be met to activate the Special Asset Pairs function?
In simple terms, nothing!
The Special Asset Pair (SAP) function is automatically applied when the pair of your collateral asset and borrowing asset is included as a Special Asset Pair (SAP).
For example, the stATOM/ATOM pair will offer a 35% additional borrowing power.
meTOKENS
What are meTokens and why are they created?
meTokens, short for Multi-Variant Elastic Tokens, are an innovative index product constructed to minimize individual token risk and serve as an alternative to holding those tokens directly. meTokens include meUSD, created using a basket of popular stablecoins, and meATOM, created using a basket of the most-used liquid staking ATOMs.
How does meUSD enhance capital efficiency and reduce risk compared to individual stablecoins?
In comparison to individual stablecoins, meUSD stands out with enhanced capital efficiency and reduced asset risk. It achieves this by providing users with a unified and diversified representation of stablecoins.
Instead of relying on a single stablecoin, meUSD allows users to benefit from a basket of stablecoins, effectively mitigating the impact of volatility associated with any individual stablecoin.
This diversification contributes to a more stable borrowing and lending environment. To learn more, you can read this blog post.
What benefits does meUSD offer in terms of LTV ratio and borrowing power on UX?
meUSD offers advantages in terms of Loan-to-Value (LTV) ratio and borrowing power by providing a stable and diversified base as collateral. The use of meUSD as collateral allows users to maintain a healthier LTV ratio, reducing the risk of liquidation. Additionally, meUSD's structure contributes to increased borrowing power, offering users a more robust and risk-mitigated borrowing experience on UX.
Rather than the original 78% borrowing limit from just lending your $USDC, you’ll now be able to borrow up to 90% of your supplied meUSD collateral.
IBC Rate Limiting
How does UX’s IBC rate limit work?
UX's IBC rate limit is a chain-level security feature designed to safeguard your assets. UX’s IBC rate limit sets a maximum cap on the daily outflow from the UX chain. When the outflow exceeds the predefined limit, the IBC rate limit will be triggered and IBC transactions for outflow will be shut down.
For more in-depth information, check out our blog on IBC Rate Limiting and Github link.
How is the IBC rate limit triggered?
The IBC rate limit triggers when either of the below conditions are met:
- The aggregated daily IBC outflows exceed $USD 1M.
- An individual token’s total daily IBC outflows interchain transactions exceed $USD 600,000
For additional information check out our UX App FAQ section.
