No-Liquidation Loans

The Oikos protocol allows oTokens holders to borrow from the liquidity using their assets as a collateral. Since the algorithmic structure of the liquidity allows the IMV to only increase over time, loans can exist without the risk of liquidation. When a loan is obtained, the protocol quotes the collateral value 1:1 with the IMV price in terms of reserve asset. If a loan expires without being repaid, the protocol destroys the collateral, with a zero net effect on the protocol. Loans have a 0.0027% fixed interest rate per diem over the loan duration, paid upfront. Interest rate payments accrue directly to the liquidity, contributing to strengthen the IMV.

Rolling Loans

When the IMV price increase over the duration of a loan, the protocol allows the lender to increase the borrowed amount and extend the loan duration in change of an interest payment calculated over the new terms.

Leverage

Holders can multiply their exposure to the token by borrowing from the liquidity and using the funds to buy more tokens. This is a powerful tool for holders who want to increase their exposure to the token without incurring in the risk of liquidation.