Mars Protocol
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Lexicon
Name
Description
Address Provider
Holds addresses of the main contracts of the core protocol.
APY
Annual percentage yield (all APYs are estimates).
Borrowing Capacity
The total amount you can borrow as expressed by a percentage. If you hit 100% of your borrowing capacity you are at risk of immediate liquidation.
Borrowing Limit
The maximum amount you can borrow relative to your deposit at the time you initiate your position. The limit varies based on the assets you have deposited and borrowed, but it is always lower than your liquidation threshold to provide a cushion in case of market volatility.
Collateral (Binary)
Indicates whether an asset can be used as collateral within the platform. Some assets that fall into a specific risk profile may be allowed to be deposited in the platform and made available for borrowing, but they wouldn’t be usable as collateral.
Council
Handles submission, voting and and execution of proposals. As protocol becomes stable, the Council will be the admin of all protocol contracts and have privileges to update most params.
Exposure Limi
Mars will set a deposit limit to certain assets based on their risk profile. This cap will serve as a protection mechanism that allows newer (and potentially riskier) assets to be added to the platform without sacrificing the overall integrity of the system.
Health Factor
Determines the safety of a user’s leveraged yield farming position. The higher the Health Factor, the safer a position is and vice versa. A Health Factor below 1 indicates that the position is effectively bankrupt (value of assets < value of debt).
Incentives
Manage MARS incentives for maToken holders (depositors).
Liquidation Bonus
Determines the bonus the liquidator receives when it liquidates a position. This bonus is paid from the collateral of the user that gets liquidated.
iquidation Threshold
The level at which your farm becomes eligible for liquidation. You should keep a comfortable cushion below this level to minimize liquidation risk.
Leverage
Your leverage ratio. On Mars this is currently expressed as a multiple of your deposit. For example, if you deposit $100 and borrow $100, you have a leverage ratio of 2x.
Liquidation Price
If your primary asset falls below this price you are in immediate danger of liquidation.
LTV
Loan-to-value ratio. If your LTV hits 100%, you are in danger of being liquidated.
MARS Token
Standard cw20. Mars holders can stake mars to receive xMARS and be able to vote and earn protocol fees.
maToken
maToken is a modified cw20 that is minted in representation of a deposited asset. Each deposited asset has a corresponding instance of the maToken and accumulate interest in the way that they are redeemable for an ever increasing amount of their underlying asset. The Red Bank can do forced transfers/burns when user positions are being liquidated. On each contract call that changes a balance, the maToken will call the incentives contract in order to manage MARS rewards.
Maximum Cap per Strategy
Indicates the maximum amount of assets Mars will be able to deploy to a given strategy. If multiple SCs are deploying the same strategy, the Maximum Size will need to be divided between those SCs. In addition to an overall maximum cap per strategy, Mars will be able to determine a maximum cap per protocol implementing that strategy on an ad hoc basis.
Maximum Leverage
Indicates the maximum amount of debt a user can take when opening or adjusting a position given the user’s deposited collateral. The Initial Leverage of a position must always be less than or equal to the Maximum Leverage for the strategy. For example, a Maximum Leverage of 3 indicates that a user who provides 100
Minimum Position Size
Indicates the minimum size a new position needs to have in order to be opened.
Optimal Utilization
Determines the optimal ratio of borrowed vs. deposited assets for a given money market. For example, if the optimal utilization of a market is 80%, then at the optimal utilization level the amount of assets borrowed from that market should be 80% of the assets deposited into that market.
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