Unveiling Vessels on Gravita Protocol: Flexibility and Control over Your Loans
Gravita Protocol’s launch is rapidly approaching, and we are thrilled to unveil one of its core concepts: Vessels.
Vessels offer users unparalleled flexibility and control over their loans, revolutionizing the borrowing experience on the decentralized finance landscape.
Introducing Vessels
Vessels are the foundation of Gravita Protocol’s loan system. Denominated in WETH or an LST like rETH, users deposit collateral into their Vessels to borrow GRAI, manage their loans, and maintain their positions. Each Ethereum address can have one Vessel per collateral type.
Balances and Loan-to-Value (LTV) Ratio
Every Vessel maintains two balances: collateral and debt denominated in GRAI. Users can adjust these balances by adding collateral or repaying debt, changing their Vessel’s Loan-to-Value (LTV) ratio accordingly. Gravita Protocol empowers users with the flexibility and control they need to manage their loans effectively.
Closing Your Vessel
When you’re ready to close your Vessel, simply pay off your debt in full. Gravita Protocol’s user-friendly interface allows for a seamless borrowing experience, tailored to the needs of today’s sophisticated users.
Why Use Gravita Protocol for Your LSTs?
Gravita Protocol offers numerous benefits for users looking to make the most of their Liquid Staking Tokens (LSTs):
- Capital efficiency through loans issued in productive collateral
- Fixed 0% APR, with a one-time 0.5% fee refunded for short-term borrowers (under six months)
- Hard and soft built-in mechanisms for GRAI
Maintaining a Healthy LTV
To avoid being redeemed against or liquidated, it’s crucial to keep your Vessel’s LTV low. While redemptions won’t be live at launch, liquidations will be. By efficiently managing your loan and maintaining a healthy LTV, you can ensure a smooth borrowing journey on Gravita Protocol.
The Countdown Is On!
As we get closer to the Gravita Protocol’s launch, stay tuned for more information about this game-changing platform. Get ready to embark on an innovative borrowing experience like never before.
