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Loan Agreement on Solana Solend: New Updates and Parameters for Users to Know

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On April 11, it was reported that the loan agreement on Solana Solend had been launched in the first phase of SolendV2, and three new functions had been updated: loan weight, TWAP

Loan Agreement on Solana Solend: New Updates and Parameters for Users to Know

On April 11, it was reported that the loan agreement on Solana Solend had been launched in the first phase of SolendV2, and three new functions had been updated: loan weight, TWAP oracle machine and capital outflow rate limit. Among them, the new parameters of LTV and loan weight would take effect on April 17, and users need to update their open positions.

The loan agreement Solend has been launched in the first phase of the V2 version, with functions such as updating loan weights

As the world of DeFi continues to grow, new platforms and updates are emerging at a rapid pace. One of the latest updates in the field is the launch of the loan agreement on Solana Solend, with three new functions recently added. In this article, we will delve into what these new functions are and what users need to know before updating their open positions on SolendV2.

Overview of Solana Solend Loan Agreement

Before we dive into the new updates, it’s essential to have a basic understanding of the Solana Solend loan agreement. Solend is a decentralized lending platform built on the Solana blockchain. It enables holders of Solana tokens to provide liquidity and earn interest on their holdings. Moreover, the platform also provides a borrowing facility to its users, enabling them to borrow against their collateral.
The lending process is straightforward. Users deposit their collateral into a smart contract, receive a loan in return, and agree to repay the amount with interest within the agreed-upon timeframe. The interest rate is determined by market demand and supply, and the platform itself doesn’t have any control over it.

New Functions on SolendV2: Loan Weight, TWAP Oracle Machine, and Capital Outflow Rate Limit

On April 11, it was reported that three new functions had been added to the SolendV2 platform: loan weight, TWAP oracle machine, and capital outflow rate limit. Each new feature has been implemented to improve the system’s overall operational efficiency and transparency.

Loan Weight

Loan Weight is a new parameter that determines the size and value of collateral required to open up positions on SolendV2. With loan weight, the platform can calculate an accurate worth ratio of the collateral deposited to the loan value. The higher the loan weight, the more collateral will be required to open up a position. The use of loan weight ensures that sufficient collateral is maintained as a safety measure to minimize the platform’s default risk.

TWAP Oracle Machine

Another new function added to SolendV2 is the TWAP (Time-Weighted Average Price) oracle machine. The algorithmic formula that this function implements calculates the average price of an asset over a period, giving a more accurate price indication. This helps to ensure that market volatility doesn’t disproportionately affect SolendV2 users.

Capital Outflow Rate Limit

The Capital Outflow Rate Limit is the third new feature launched on SolendV2. This parameter determines the maximum amount of funds that can be transferred out of the platform. With the Capital Outflow Rate Limit set in motion, the platform can better manage users’ fund availability and ensure financial stability.

Upcoming Parameters: LTV and Loan Weight

Among the new updates, the two that users need to be aware of are the LTV and Loan Weight parameters. On April 17, the new parameters will take effect, and users will need to update their open positions accordingly.

LTV

LTV (Loan-to-Value) is the ratio of the loan amount to the collateral value that borrowers borrow against on the platform. The LTV ratio on SolendV2 determines how much collateral is required to open up a position. With the new LTV parameters, the platform will enable more flexibility in the borrowing process.

Loan Weight

As previously mentioned, the Loan Weight parameter has been added to determine the size and value of the collateral required to open up positions. The new parameter is set to affect the safety of the SolendV2 platform, and users will need to update their open positions according to the changes.

Conclusion

In summary, Solana Solend’s loan agreement has undergone new updates with three new functions launched: loan weight, TWAP oracle machine, and capital outflow rate limit. Among the new features to be aware of are the LTV and Loan Weight parameters. These new parameters are set to affect the borrowing and lending processes on SolendV2, and users will need to update their open positions accordingly.

FAQs

Q: What is Solana Solend?
A: Solana Solend is a decentralized lending platform built on the Solana blockchain. It offers lending, borrowing, and liquidity earning opportunities to its users.
Q: What are the new features on SolendV2?
A: The new features on SolendV2 are loan weight, TWAP oracle machine, and capital outflow rate limit.
Q: When will the new parameters on LTV and Loan Weight take effect?
A: The new parameters on LTV and Loan Weight will take effect on April 17, and users need to update their open positions accordingly.

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