Parameters & Fees
Each engine has parameters specific to it. Since mainnet is not yet live, these parameters are TBD.
- Interest Rate: The APR at which USDA debt accrues interest. AKA "Borrow Interest Rate".
- Mint Cap: The max amount of USDA that can be borrowed from this engine.
- ICR: Initial Collateral Ratio. The lowest collateral ratio allowable when initially borrowing USDA.
- MCR: Minimum Collateral Ratio. The collateral ratio at which vaults get marked for liquidation.
- LCR: Liquidation Collateral Ratio. The highest collateral ratio that vaults can be liquidated to.
- Liquidation Penalty: A fee paid by vault owners during liquidation. See here for details.
- Liquidation Delay: The grace period between when a vault is marked for liquidation, and when liquidations can actually start. If the collateral ratio is raised above the liquidation collateral ratio during this time (either via price fluctuations, adding collateral, or repaying debt), the vault will become unmarked.
Global safety parameters
Testnet numbers are not representative of Mainnet numbers.
- Debt Ceiling: The max supply of USDA. Will be manually adjusted.
- Hourly USDA Increase: The max amount of USDA that can be minted per hour.
- Minimum Debt: The minimum amount of USDA that can be borrowed in a vault. Ensures that any liquidation event is profitable for the liquidator; also reduces dust. The picking of this parameter depends on Aptos network fees and APT price.
We will use these addresses for both Testnet and Mainnet. You can safely integrate with these addresses as they will not change. Argo is typically redeployed on Testnet on Friday afternoons (after the Aptos team resets on Thursday night). We are happy to partner and work with other protocols. Please contact the Argo team if you have any questions.
Borrow Interest Rate
Argo's primary fee is a variable-rate interest continuously added to a Vault's minted USDA balance. This parameter can be tuned per engine type, in order to encourage or dis-encourage borrowing. In turn, this may also affect the total outstanding supply of USDA, which helps maintain peg.
The Argo protocol collects the revenue generated by borrow interest rates, giving Argo long-term sustainability. Additionally, treasury USDA can be used as a back stop in the event of bad debt.
Borrow interest rate in Argo is roughly equivalent to the stability fee of Maker.
Withdraw and Deposit Fees
Argo does not charge any withdraw or deposit fees.
This is important for composability, efficiency, and usability. Positions can be rebalanced at no cost,shifted around/arbitraged in response to dynamic interest/reward rates, or de-risked to lower exposure.
Performance / Liquidity Mining Fees
Argo does not charge any fees on liquidity mining rewards or performance of deposits.
Aptos charges transaction fees in APT for making transfers. The Argo does not allow you to deposit your entire APT balance, so that you have some remaining APT to pay for transaction fees.