# Introduction to WeFi
WeFi is a decentralized money market protocol that opens up investment loan options in DeFi for global users to invest in digital assets via multi-pool borrowing.\
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:point\_right:WeFi is a trustless protocol driven by secure smart contracts. It does not rely on credit scoring or any centralized enforcement to operate.
:point\_right:WeFi allows cryptocurrency lenders to enjoy attractive, sustainable yields. Conversely, borrowers access predictable investment loans empowering them to invest in the lucrative digital asset market.
:point\_right:WeFi Finance's investment loans are used to invest in other digital assets from a connected DEX via the WeFi protocol. Afterward, the acquired asset (investment) is securely locked in our protocol until the loan is repaid with interest. If not, the asset is liquidated in an auction when it reaches the liquidation point.
WeFi Finance is a money market ledger where users can supply or borrow digital assets. Interest is computed as a function of time, fluctuating depending on market conditions. The protocol's smart contracts will be publicly accessible and flexible for incorporation by diverse systems, industry dApps, and ordinary users across the globe.
Each money market is unique to a given isolated pool. It also contains a transparent and publicly-inspectable ledger, recording all transactions and historic interest rates.
# Community channels
Website:
DApp:
Twitter:
Discord:
Telegram Channel:
Telegram Group:
Medium:
Instagram: [https://www.instagram.com/wefi\_xyz](https://www.instagram.com/wefi_xyz/)
YouTube:
Galxe:
Guild:
# Price Prediction Game FAQ
### General Questions:
**Q) What’s the WeFi's Price Prediction Game contract address?**
Verified contract address:
**Q) Is there a time limit before I can collect my winnings?**
No, you’ll be able to collect your winnings at any time in the future.
**Q) How is the payout calculated?**
* Payout Ratio for UP Pool = Total Value of Both Pools ÷ Value of UP Pool
* Payout Ratio for DOWN Pool = Total Value of Both Pools ÷ Value of DOWN Pool
For example, if there’s 15 WBTC in the DOWN side of a round, and the overall prize pool is 150WBTC, the DOWN payout ratio will be (150/15)=10x.
* Payout Amount = Payout Ratio × Position × (1 - Treasury Fee)
In the above case, if the round ends on a DOWN result, if you committed 2 WBTC to a DOWN position, you’d get a payout of (2\*10) × (1-0.03) = 19.4 WBTC. Your profit would be 17.4 WBTC (19.4 - 2).
The treasury fee is currently set at 3%: this may be subject to changes, which will be announced on WeFi’s official communication channels.
**Q) What are the fees?**
3% of each round's total pot will go to the treasury.
**Q) What are you using for your price feed?**
WEFI uses Chainlink for our price feeds due to its high-quality data, secure node operators, decentralized network, and economy of scale.
**Q) The round's result changed after the round ended! Why?**
Sometimes, after a round closes, the final result may be different from the last result shown while the round is live. If you watch a round end on "DOWN", it may appear to flip to "UP" a few seconds later.
This is because we use the Chainlink price feed to determine the final outcome of a round. The period between the end of one round and the start of the next is 30 seconds, but the Oracle refreshes every 20 seconds. It's possible that during this short period, Oracle might send an update while the transaction to trigger the next round is being minted. This can appear to "flip" the outcome of the previous round.
### About Positions:
**Q) What happens if no one enters an opposing position?**
If only one side of a round has positions entered into it, then that side loses, and the losing funds will be sent to the treasury.
For example: if User A enters an UP position, no one else enters a DOWN position. User A loses, and there are no opposing positions for the winnings to be paid out to. Funds are sent to the treasury.
**Q) What happens if the Locked Price and Closed Price are the exact same?**
In the very rare occurrence that the Locked Price is exactly the same as the Closed Price, no one wins, and all funds entered into positions will be sent to the treasury to be used for WEFI buybacks to burn.
**Q) Can I change or remove my position?**
No. Once you enter a position, you can NOT change the direction, add to, or remove your position. It's locked in, so make sure you're 100% happy with your position direction before confirming.
### Market Pauses:
**Q) What does it mean when markets are paused?**
Markets are paused when there are conditions that affect the reliability of the contract. Markets being paused means that no bets will be taking place for any rounds.
**Q) What causes the WeFi Prediction market to pause?**
The prediction market will pause under the following conditions:
The prediction contract has been unable to obtain the price from the Chainlink oracle due to the oracle not having posted the price at the time the round ended.
The prediction contract has been unable to execute an action (ending a round or getting a price from the oracle) due to the TX being stuck in the pool for longer than 15 blocks.
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**Q) When will the markets resume after being paused?**
The markets will resume when an admin (one of the Devs) manually resumes the market
**Q) What happens to my position if the market pauses?**
If the markets pause while you have a live position, your funds will be available to reclaim, the same way as you would normally claim your winnings.
To reclaim funds, you’ll need to pay some gas fees. We can’t compensate you for the gas fees, so please bear this small risk in mind before participating.
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# Key Terminology
**Digital Asset:** Any cryptocurrency or tokenized asset class available on decentralized exchanges. Including but not limited to liquid digital assets, tokenized stocks, NFTs, and more.
**Equity :** This is the initial amount a user puts as their contribution, based on equity a borrowing limit is defined.
**User :** Any wallet holder who engages with the protocol either as a LENDER or as a BORROWER.
**Lender :** Any Wallet holder who engages with the protocol to provide liquidity in one or multiple isolated pools.
**Borrower :** Any Wallet holder who engages with the protocol to borrow from one or multiple isolated pools.
**Borrowed Asset :** Any amount of digital asset borrowed from any of the isolated pools to further invest in a digital asset within the protocol.
**Invested Asset :** Any investment made by the user after borrowing from the protocol. e.g. ETH/AVAX/MATIC etc.
**Collateral :** The term collateral refers to Invested assets which are kept under the protocol as deposit/security.
**Borrowing Balance:** Maximum amount a user can borrow. It is calculated based on equity and borrowed assets.
**DeFi:** Decentralized Finance.
**TVL:** Total Value Locked.
**DEX:** Decentralized Exchange.
**Permissionless :** Anyone can lend their assets across the protocol(s) of their choosing at minimal costs.
**Automated :** Smart contracts follow pre-established parameters to issue, monitor and service active loans.
**Non-Custodial :** Virtually all DeFi lending protocols do not require users to transfer ownership of their underlying assets. This means they can come and go as they please without any guidance or approval from a third party.
**Secure :** Major lending protocols have been rigorously audited, meaning that funds supplied to lending contracts are backed by the most robust code in the world.
# Technical
## Architecture and Components
### **pToken Contract**
In Paxo Finance, every money market is trustless. All operations are anchored on a secure smart contract complying with an ERC-20 token specifcation. PToken balances represent users' balances. They can mint pTokens by contributing assets to the market or redeem pTokens for the underlying item. As interest builds up, the price (exchange rate) of pTokens and the underlying asset rises over time.
This is calculated as:
### **Interest Rate Model**
Many protocols including dydx have adopted non linear interest rate models. More recent protocols like Aave & compound have adopted kinked rates. This model exhibits some form of kink: they sharply change at some defined threshold. Such interest rates are employed by a number of over collateralised lending protocols recently.
Paxo money markets are defined by an interest rate imposed uniformly on all borrowers. They are adjustable depending on the dynamic supply-demand relationship.
An Interest Rate Index captures the history of each interest rate for each money market. It is calculated each time an interest rate changes due to a user minting, redeeming, borrowing, repaying, or liquidating the asset.
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**Utilization Rate** unifies supply and demand into a single variable, calculated as follows:
baseRate and multiplier are set through governance. Borrowing interest rates may resemble the following:
### **Oracle Price index**
A Price Oracle tracks the current exchange rate for supported assets.
Paxo has delegated asset value determination to a committee that aggregates prices from the top ten exchanges. These conversion rates are used to calculate borrowing capacity and collateral requirements, as well as for any other function that requires determining the value equivalent of an account.
### **Liquidation Event**
If a user’s borrowing balance exceeds their total collateral value due to market shocks forcing the collateral to depreciate, or borrowed assets increasing in value, the public function for liquidation can be called. This call exchanges the invoking user’s asset for the borrower’s collateral at a slightly better than market price.
Get the exchange rate and calculate the number of collateral tokens to seize:
Liquidation Incentive: Multiplier representing the discount on collateral that a liquidator receives Liquidator pays the repayAmount and receives seized collateral tokens.
### **Comptroller**
The Paxo protocol does not support specific tokens by default; instead, markets must be whitelisted.
It is accomplished through an admin function that allows users to use the asset. There must be a valid price from the Price Oracle for a user to borrow an asset. At the same time, to use an asset as collateral, there must be a valid price and a minimum deposit factor
# Governance
Not implemented yet, this is in our roadmap.
WeFi will be released with a guarded launch through our governance model. The governance framework of Compound inspires us.
A part of WeFi Tokens can be minted to incentivize traders. For every investment loan position the user creates, they can mint WeFi Tokens as per the protocol. Conversely, in the case of lenders, they mint WeFi Token as per the incentive structure for every transaction.
The admin controls the following rights in the protocol:
● Listing a new isolated pool
● Listing a new WeFi Token market
● Updating the interest rate model per market
● Setting incentive structure for lenders and traders.
● Updating the oracle address
● Withdrawing the reserve of a WeFi Token
● Choosing a new admin, such as a DAO controlled by the community. Typically, the DAO can choose a new admin.
Therefore, system administration can evolve based on the decisions of the stakeholders.
# Ecosystem
**Price Oracle** \
[Chainlink](https://chain.link/), [API3](https://api3.org/), [Umbrella Networks](https://www.umb.network/), [Pyth Network](https://pyth.network/)\
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**Dex**\
[UniSwap](https://uniswap.org/), [KyberSwap](https://kyberswap.com/), [QuickSwap](https://quickswap.exchange/), [SyncSwap](https://syncswap.xyz/)\
# Security
**Audit**
[**Peckshield Audit Report**](https://docs.google.com/document/d/1uNrOZqCMzTxA_BM6PxMxugvjDgTOFCFL966bim28zS0/edit?usp=sharing)
**Audit**\
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[**Quillhash Audit Report**](https://github.com/Quillhash/Audit_Reports/blob/master/Paxo%20Smart%20Contract%20Audit%20Report%20-%20QuillAudits.pdf)
# Lending
**How Do I Make Money With WeFi ?**\
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For lenders, they can choose to invest in any of the multiple pools provided and earn interest.
**How much interest will I get on lending?**
Every pool has a different interest percentage based on supply and demand. The interest amount will be displayed on the dashboard for all the investment pools available.
**Is my investment safe?**
Yes, your lent amount is completely safe since we use a walled garden approach, which means the borrower can only take out the loan amount once the principle amount and interest is paid.
**When can I withdraw my currency from WeFi?**\
Lenders can withdraw their currency anytime they want.
# Borrowing
**How can I borrow with WeFi?What Do I Need To Apply For A Loan?**
Being a borrower with **WeFi**, you need to connect your wallet, choose what asset you want to borrow and deposit collateral.
**When do I have to pay back the loan?**
The loan amount is perpetual, that means you can have the loan amount as long as you want, subject to the value of the collateral not falling below the margin amount.
**How much can I borrow with WeFi?**
Our lending protocol provides upto 5X loans for just X amount as collateral. You can put in $100 and get a $500 loan with **WeFi**.
**Will i get liquidated? What happens when I get liquidated?**
You will only get liquidated when your borrowed amount goes below margin.
**Do I Still Own My Cryptocurrency Asset During My Loan?**
Your purchased crypto is stored with us safely as a collateral, and you receive **WeFi Tokens** against them.
**What Interest Rate and fees Do I Need To Pay?**\
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The interest rates are very competitive. The exact amount is shown in the dashboard when you borrow.
**Will WeFi Perform A Credit Check On Me If I Apply For A Loan?**
We are firm believers of decentralisation, automation, and financial inclusion espoused by DeFi. We stand by these principles. All you need is a crypto asset. No credit checks. No KYC. No social enforcements.
**What Are The Advantages Of Using My Cryptocurrency As Security For My Loan?**
With a lucrative loan to value ratio, the borrower gains the strength to invest much higher than the equity with **WeFi** protocol; thereby fueling their efficiency as a crypto trader or investor.
**Do I Share In The Upside or downside If The Price Of My Crypto Goes Up or down?**\
No, we do not share the upside or downside. The gains and losses from market movements are all yours.
**What Happens If The Price Of My Crypto Is Down, Or Up, At The End Of My Loan?**
If a user’s borrowing value exceeds their total collateral value due to the value of collateral falling; or due to the increase in borrowed assets value; liquidation will be called upon publicly. This will exchange the user’s assets for borrower’s collateral; at a better price than standard market rates.
# Brand Assets
**Logo (PNG)**
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{% file src="/files/09MMB4R4GkzrwwWptVs6" %}
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**Logo (SVG)**
{% file src="/files/SeuozPXdGP0uDKZSBcHQ" %}
{% file src="/files/u1VDERB2544jgudOn2jx" %}
**Icon (PNG)**
{% file src="/files/56PouiVFmjcWicX8814Y" %}
{% file src="/files/FJa4PtOMN0jhBV4Gll6U" %}
**Icon (SVG)**
{% file src="/files/qoNL7BKBMAVnIqDsZnA5" %}
{% file src="/files/7PzMEocQOS7Gnj5Rqt6v" %}
**$WEFI Token Symbol**
{% file src="/files/MJQ3L6BjyodIw2yi0lTD" %}
**Backgrounds**
{% file src="/files/YaAEeS1AJqGvsaG5Lblf" %}
{% file src="/files/i7kOduArXCULoUXIWhE8" %}
# FAQ
**What countries do you support?**\
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**WeFi** is permissionless and trustless, anyone can access the protocol. However users from a few countries are restricted. You can read our terms of service to see which countries are restricted.
**How Does WeFi Make Money?** \
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**WeFi** earns money by charging a small fee to facilitate borrowing and lending.
**What are the use cases of WeFi loans?**\
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1\. Borrowers can borrow upto 80% capital from **WeFi** to buy digital assets and earn higher ROI when the value of the digital assets increase.
2\. Lenders can supply assets and earn interest (variable APY).
**Which chains do you currently support?**
As of now, we support Polygon chain and XDC chain.
**What are the current markets available to borrow?**
**WeFi** users can currently borrow Bitcoin, Ethereum and Matic, USDC
**What are the supply markets currently available?**
You can currently only supply USDT, USDC and earn interest.
**Which wallets does WeFi support?**
**WeFi** lets you connect 170+ wallet through wallet connect. However you can connect Metamask and Coinbase wallets natively.
**Is the protocol audited? Is there any risk involved?**
As part of our commitment to security and transparency, **WeFi** protocol is audited by Peckshield, Quillaudits. However there are always certain risks that are involved. You can read our terms of service for complete risk disclosures.
**How much can I borrow in WeFi?**
In **WeFi**, you are able to borrow up to 5x of your capital. In addition, there is no upper limit to how much you can borrow. For example, You can put in $100 and get a $500 loan with **WeFi**.
**How much can I lend on WeFi?**
There is currently no limit on how much you can lend on **WeFi**.
**Is there a WeFi token?**
Currently the **WeFi** token is not live. Our aim is to launch the token in the first quarter of 2023 or earlier depending on the market conditions.
**How to borrow on WeFi?**
Visit the **WeFi** app > Connect any wallet > Switch network to polygon > Navigate to borrow and invest section in the dashboard> Select a token and click borrow > Select how many units you want to buy > Select borrow limit between 1x to 5x > Select pay.
**How to lend on WeFi?**
Visit the **WeFi** app > Connect any wallet > Switch network to polygon > Navigate to supply section in the dashboard.> Select a token and click supply > Enter how much do you want to supply> Click Lend.
**How much interest do I earn from providing liquidity and pay for borrowing to buy assets?**
Interest rates are a function of the liquidity available in each market, and fluctuate in real-time based on supply and demand. When liquidity is plentiful, interest rates are low. As liquidity becomes scarce, interest rates increase, incentivizing new supply and the repayment of borrowing. You aren’t locked into an interest rate — expect it to change.
**How do I know my borrowing balance?**
A borrower's borrowing balance can be viewed under the website's portfolio section.
**How do I know my supply balance?**\
You can check your supply balance under the website’s portfolio section.
**When will my positions get liquidated?**
You will be liquidated if your borrow balance comes close to the value of asset you hold. This is done to safeguard the lenders from losing their money. Here is an approximate mathematical formulae. \
`Liquidation point = Current Value - [(90% * Current value) - Borrow Amount]`
**What do you mean by borrow and Invest?**
The concept of Borrow and Invest refers to taking a loan and then investing this amount and your contribution into any digital asset that you choose within paxo. You can borrow upto 5 times of your capital to invest in paxo platform.
**What is the supply tokens section under the dashboard?**
Supply token section is where you as a liquidity provider or lender can supply your stable coin assets to earn interest from paxo.
**What is the collateral for my positions?**
The **WeFi** protocol will keep an investment asset as collateral as part of its design. In order to take possession of the invested positions, the user must pay back the principal amount and interest. Using the protocol, users can also liquidate their positions on DEX by selling the invested asset.
**What is a WeFi Token?**
**WeFi** Tokens represent users' balances or deposit within **WeFi**. Users can redeem their **WeFi** Tokens for assets or mint new ones in exchange for the underlying term.
**When do I repay the loan?**
The loan amount is perpetual, so you can have it for as long as you like. However if you reach liquidation point, you have a risk of liquidation.
**Why is the supply rate lower than the borrowing rate?**
In each market there is excess liquidity (assets supplied > assets borrowed), which allows you to quickly withdraw or borrow funds from the protocol.
The interest paid by borrowers is earned by the suppliers of the asset. Because there are more suppliers, the interest rate they earn is proportionately lower; this measured by an asset’s Utilization Rate.
Second, a portion of the interest paid by borrowers is set aside as reserves which acts as insurance.
**How does the protocol’s price feed work?**
We are currently integrated with chainlink, they supply the price feeds to **WeFi**.
**I want to join the community; where do I find you?** \
The following links will lead you to **WeFi** Finance's amazing community:
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Discord :
Twitter :
Telegram :
Website : [WeFi.xyz ](https://docs.wefi.xyz/)\
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**Where can I access the WeFi protocol app?**
WeFi Mainnet : [Wefi.xyz](https://docs.wefi.xyz/)
**Who controls the WeFi protocol?**
Currently the WeFi protocol is controlled by the WeFi team, however the ultimate goal is to govern the protocol by setting up a DAO.
**What does Utilization in supply tokens mean?**
The utilization rate unifies supply and demand into a single variable and is calculated as follows: `UtilizationRate = Borrows/cash+borrows`
**How much can we withdraw?**
You can withdraw your entire supplied amount+ earnings- losses. Users can sell the position and pay back the principle and interest and take custody of the invested asset.
**When will we add new pools/ markets?**
WeFi team will continuously add new markets by building partnerships.
**Can we get the purchased assets in our wallet?**
You will only be able to get the purchased assets in your wallet after repaying the borrowed amount.
**I cannot access the protocol. What do I do?**
We have a dedicated discord channel to provide support. We usually respond within 24 hours. Our Discord channel is