Blubbo - Your one stop shop to earn on TON

FAQs

What is Blubbo?

Blubbo is a decentralized one-stop-shop yield earning platform built on TON. For the money market product, users can earn interest on crypto assets or take out loans using crypto as collateral. With a focus on accessibilty, seamless exeperience and multi asset coverage on TON, Blubbo aims to be the easiest way to lend, borrow and earn on TON.

Which cryptocurrencies does Blubbo support?

Blubbo currently supports all major cryptocurrencies and assets on TON: TON, jUSDC, jUSDT, stTON, tsTON. Additional assets will be added.

Are there any fees for using Blubbo?

The protocol doesn't charge any direct fees for depositing or withdrawing. However, all transactions on the blockchain require gas fees, which are paid to the network, not to the protocol.

How are the borrowing and lending rates determined?

Interest rates are set algorithmically based on supply and demand within the protocol. When there's higher demand for borrowing a particular asset, the interest rates for lenders of that asset increase.

How can I lend and earn with Blubbo?

Interest can be earned by depositing cryptocurrency into Blubbo's lending pools or vaults. To earn in our lending pools or vaults, simply deposit your asset and start earning passive income on your funds on Telegram. Interest rates and yields are variable and adjust automatically based on market conditions or underlying vault yield strategy.

How do I borrow with Blubbo?

To borrow, you must first deposit some crypto as collateral. The amount you can borrow depends on the value of the collateral against your loan, calculated as collateral-to-loan ratio. After depositing collateral, the amount you can borrow will be calculated according to the value of your deposit and your borrow (determined by assets' collateral factor and borrow factor). This can be found in the asset page for each pool.

After depositing and borrowing your collateral-to-loan ratio will be calculated. You can deposit more collateral to borrow more, or repay part or whole of your loan to bring your collateral-to-loan ration up. Maintaining a healthy collateral-to-loan ratio is important to avoid liquidation.

What happens during liquidation?

Liquidation occurs when the value of a borrower's collateral falls below the required threshold. On Blubbo when the collateral-to-loan ratio drops below 1, the liquidation threshold will be met. When this happens, deposited collateral will be sold to bring the ratio back up to 1. On Blubbo, liquidation is only partial, and only the outstanding part of the collateral required to bring the collateral-to-loan ratio to 1, plus the liquidation bonus, will be liquidated.

Here's what happens in such a scenario:
1. Trigger: The liquidation process is automatically initiated when the collateral-to-loan ratio drops below 1 on Blubbo.
2. Partial Auction: A portion of the collateral is liquidated (sold to liquidator) - just enough to bring the position back to 1.
3. Liquidation Bonus: A liquidation bonus is applied, an additional collateral liquidation to the collateral being liquidated. This is given to third party liquidators, and around 10-15% (depending on asset) on Blubbo.
5. Return to collateral-to-loan ratio 1: Position is now returned a safe collateral-to-loan ratio of 1.

Liquidation is an automated process designed to protect Blubbo and its users. Borrowers can avoid liquidation by maintaining a healthy collateral ratio or repaying part or whole of their loan when market conditions become unfavorable.

Has Blubbo been audited?

This version of Blubbo is currently in testnet. Our testnet version is not audtied. Security is a top priority, and our mainnet version will be audited by industry leading security firms. As with any DeFi protocol, we encourage users to DYOR.

Your one stop shop to earn on TON.

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