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FAQs
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Where can I find a tutorial on how Borrowing works?

One of our partners - SpiritSwap - made this tutorial video. It covers how lending/borrowing works, and a walk-through of opening and closing a position (walk-through starts at 2:05 minute mark): SpiritSwap Lending & Borrowing Network

What is the difference between a green APY (positive) and a red APY (negative)?

If the APY percentage is green (positive), that means you are earning money. If the APY percentage is red (negative), that means you are paying money. The net APYs displayed are really a combination of two different APYs: the Supply/Borrow APY and the Distribution APY.
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Positive APY is earning interest, while Negative APY costs interest

What is the difference between Supply/Borrow APY and Distribution APY?

The Supply/Borrow APY accrues in the same asset you are supplying or borrowing. It is the normal interest rate that a user receives/pays to supply/borrow a token, respectively. The Distribution APY, however, is an additional incentive that the owner of the lending network can distribute to users through a Rainmaker program.
For example, let’s say you borrow ETH on ApeSwap’s lending network as shown below. You will pay 8.46% APY in ETH, but earn 13.89% APY in BANANAS for as long as the Rainmaker program runs.
Note: Both the Supply/Borrow APY and the Distribution APY are floating rates that change with market conditions.
The Total APY is a combination of the Borrow/Supply APY and the Distribution APY

How do I receive/pay the interest from the APY?

The Supply APY is automatically compounded behind the scenes as part of the Ola Protocol. It gets absorbed into the oTokens, so when you withdraw your supplied assets, you will have more than you started with; the longer you leave them, the more you get! (See: Earning Interest)
The interest accrued from the Borrow APY is automatically added to the amount you have borrowed - this means your borrowed amount slowly increases over time, relative to the Borrow APY. Since the accrued interest gets added to your debt, to pay it you simply pay back a portion of your loan.
The Distribution APY, on the other hand, needs to be claimed manually. To do this, click the button in the top right corner of the screen and select claim rewards. This button displays the number of tokens you have accumulated, relative to the Distribution APY, from both the Supply and Borrow sides combined. Remember: claiming this bonus incurs a blockchain transaction fee.
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Clicking the "Claim Rewards" Button Releases Accumulated Rainmaker Tokens (via Distribution APY)

What is Ola's Rainmaker Program and how long does it last?

Ola's Rainmaker Program enables creators to distribute external incentive tokens to lending network users to incentivize the borrowing or supplying of certain assets. It can run for as long as the lending network creator wants it to!
The Rainmaker has an incentive token and a list of speeds, per each market and side (eg. 0.22 incentive-token per block to USDC supply-side or 0.0012 incentive-token per block to BTC borrow-side). Rainmaker programs can be turned on or off and distribution speeds can be tuned by the lending network creator and in accordance with the lending network's local governance scheme.
Currently, any ERC-20 token can be distributed as part of the Rainmaker program.

Is it normal that the Borrow APY and Supply APY are so different?

There can be a difference between the Borrow APY and Supply APY for an asset, and this difference is mainly due to the utilization rate. The utilization rate is the ratio between the total amount deposited into a MM and the amount borrowed from it, expressed as a percentage.
In addition, the reserve factor plays a role. The reserve factor is the amount of borrower-paid interest that goes to a reserve fund and is determined by the owner of the Lending Network. The lower the reserve fund, the more interest will be given to suppliers.

What is the difference between the Borrow Limit and the Liquidation Limit?

The Borrow Limit refers to how much money you can borrow, and it is calculated based on the Collateral Factor for an asset. The Liquidation Limit refers to the ratio at which you can get liquidated, based on the Liquidation Factor. So this is the percentage you need to watch!
You can see these factors by clicking on different assets in the "Network" tab of any Lending Network.
For example, let's say you supply $1000 BUSD with a collateral factor of 70% and a liquidation factor of 75%. The borrow limit, therefore, is $700 (70% of $1000 BUSD). When the amount borrowed reaches $750, you will get liquidated - this is the liquidation limit (75% of $1000 BUSD). The collateral and liquidation factors are different to provide you with some buffer.
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View Important Parameters for Each Token in Network Tab

How much will I lose if I get Liquidated?

For a detailed example and context, see: How much will I lose if I get Liquidated?

Where can I view the Collateral Factor, Reserve Factor, and other parameters for each asset?

Each asset has unique parameters which can vary from one lending network to another, such as the liquidation incentive, collateral factor, and reserve factor. The current parameters for each asset can be viewed on the "Network" tab in a Lending Network.
View Important Parameters for Each Token in Network Tab

I want to change a parameter on a Lending Network - who should I talk to?

While Ola Finance builds lending networks, the decision to change most parameters belongs to the creator of the lending network. This includes adding new tokens, adjusting the collateral/liquidation factors, refilling the Rainmaker program, etc. The creator's governance process decides how these changes are proposed/accepted, so making the suggestion in their community and gaining support is a good place to start! To see a full list of parameters that can be changed by the creator, see: tunable-parameters

Does Ola have a token yet?

Ola does not have a token yet nor have we announced any plans... yet :)
You can read a little more about it here: Governance Token
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On this page
Where can I find a tutorial on how Borrowing works?
What is the difference between a green APY (positive) and a red APY (negative)?
What is the difference between Supply/Borrow APY and Distribution APY?
How do I receive/pay the interest from the APY?
What is Ola's Rainmaker Program and how long does it last?
Is it normal that the Borrow APY and Supply APY are so different?
What is the difference between the Borrow Limit and the Liquidation Limit?
How much will I lose if I get Liquidated?
Where can I view the Collateral Factor, Reserve Factor, and other parameters for each asset?
I want to change a parameter on a Lending Network - who should I talk to?
Does Ola have a token yet?