Requirements and Fees

Fees

Borrowing rate paid to Davos for borrowing DUSD (fixed number set by the Davos governance):

On Arbitrum — 5.25%.
On BNB Snart Chain — 5.25%.
On Ethereum — 5.25%.
On Optimism — 5.25%.
On Polygon — 5.25%.
On Linea - 5.25%.
On Mode - 5.25%.

Liquidation penalty added to the user's debt in a Dutch auction during the liquidation process (fixed by the Davos governance):

On Arbitrum — 10% of the debt.
On BNB Snart Chain — 10% of the debt.
On Ethereum — 10% of the debt.
On Optimism — 10% of the debt.
On Polygon — 10% of the debt.
On Linea - 10% of the debt
On Mode - 10% of the debt

Borrowing Conditions

Before borrowing, read the following information.

The minimum amount to borrow:

On Arbitrum — 100 DUSD
On BNB Smart Chain — 50 DUSD
On Ethereum — 300 DUSD
On Optimism — 100 DUSD
On Polygon PoS and zkEVM — 50 DUSD
On Linea - 100 DUSD
On Mode - 100 DUSD

Liquidation Incentive:

On Polygon — $5 (tip) + 0 (chip).
On Ethereum — $10 (tip) + 0.01% of the liquidated amount (chip).

Collateral Ratios

Remember if your borrow position reaches the collateral ratio, your position may get liquidated. Borrow responsibly! The collateral ratio is:

For vUSC and vUSDT — 93% of the deposited collateral value.
For every other supported token — 66% of the deposited collateral value.

Minimum Collateral Amount

Current minimums are:

0.25 of 1 unit of supported collateral on Ethereum.
100 units of all types of supported collateral on Polygon.

Flash Mint Requirements

Pay attention to these requirements while using Flash Mint:

Flash Mint fee — 0.1% of the minted sum.
Mint limit — $100,000 is the cap the user can mint.

Rewards

The borrowing reward — users get rewards for borrowing DUSD, in DGT — the Davos governance token. Rewards are calculated dynamically and are the product of the rewards rate and the total user’s debt in DUSD. The rewards rate is a fixed amount set by Davos.
The auction start reward — anybody who triggers the liquidation event of a CDP, i.e., start of a Dutch auction, receives a flat fee (tip) and a percentage fee (chip) for just initiating the process. The tip and chip are paid by Davos from the Davos reserves.
The auction restart reward — anybody who restarts the Dutch auction, which is part of the liquidation process, receives a flat fee (tip) and a percentage fee (chip). An EOA can restart the auction when the auction time limit is reached or the price decrease has reached a certain threshold. These two limits are set by the Davos governance. The tip and chip are paid by Davos from Davos reserves.

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Last updated 8 months ago

Fees

Borrowing rate paid to Davos for borrowing DUSD (fixed number set by the Davos governance):

On Arbitrum — 5.25%.

On BNB Snart Chain — 5.25%.

On Ethereum — 5.25%.

On Optimism — 5.25%.

On Polygon — 5.25%.

On Linea - 5.25%.

On Mode - 5.25%.

Liquidation penalty added to the user's debt in a Dutch auction during the liquidation process (fixed by the Davos governance):

On Arbitrum — 10% of the debt.

On BNB Snart Chain — 10% of the debt.

On Ethereum — 10% of the debt.

On Optimism — 10% of the debt.

On Polygon — 10% of the debt.

On Linea - 10% of the debt

On Mode - 10% of the debt

Borrowing Conditions

Before borrowing, read the following information.

The minimum amount to borrow:

On Arbitrum — 100 DUSD

On BNB Smart Chain — 50 DUSD

On Ethereum — 300 DUSD

On Optimism — 100 DUSD

On Polygon PoS and zkEVM — 50 DUSD

On Linea - 100 DUSD

On Mode - 100 DUSD

Liquidation Incentive:

On Polygon — $5 (tip) + 0 (chip).

On Ethereum — $10 (tip) + 0.01% of the liquidated amount (chip).

Rewards

The borrowing reward — users get rewards for borrowing DUSD, in DGT — the Davos governance token. Rewards are calculated dynamically and are the product of the rewards rate and the total user’s debt in DUSD. The rewards rate is a fixed amount set by Davos.

The auction start reward — anybody who triggers the liquidation event of a CDP, i.e., start of a Dutch auction, receives a flat fee (tip) and a percentage fee (chip) for just initiating the process. The tip and chip are paid by Davos from the Davos reserves.

The auction restart reward — anybody who restarts the Dutch auction, which is part of the liquidation process, receives a flat fee (tip) and a percentage fee (chip). An EOA can restart the auction when the auction time limit is reached or the price decrease has reached a certain threshold. These two limits are set by the Davos governance. The tip and chip are paid by Davos from Davos reserves.