FAQ

What is Evoq Finance?

Evoq Finance is a lending pool optimizer built on existing systems like the Venus protocol. It enhances performance and capital efficiency while maintaining liquidity and risk levels, offering users at least the APY of the underlying protocol with potential improved APY through P2P matching.

How can Evoq offer higher APY compared to the underlying protocol?

Any unmatched supply falls back to the underlying protocol, ensuring at least the APY of the underlying protocol. When there is additional borrow demand, supply is withdrawn from the underlying protocol and matched, allowing for a higher APY.

How can I trust Evoq?

Evoq will undergo multiple audits before the official launch, incorporating all possible improvements. Specifically, most of the security-related code is identical to that of the Morpho optimizer for Compound, which has been live on Ethereum for over a year, meaning it has undergone extensive live testing.

Which underlying lending protocols does Evoq support?

Currently, Evoq only supports the Venus protocol - Core pool on BSC, but we plan to expand to other lending protocols and networks in the future.

How does the interest rate model work in Evoq?

For supplier:

• When matched: P2P supply APY (Dark Blue)

• When unmatched: Underlying supply APY (Light Blue)

For borrower:

• When matched: P2P borrow APY (Purple)

• When unmatched: Underlying borrow APY (Pink)

What happens if the borrow is fully matched but the supply is not?

It means that supply is greater than borrow, allowing borrowers and matched suppliers to benefit from the improved APY (P2P APY), while unmatched suppliers receive the supply APY of the underlying protocol.

How does Evoq handle liquidations?

Evoq has its own liquidators that directly monitor users' positions. These liquidators replicate all on-chain lending parameters, such as collateral factor, liquidation threshold, and close factor, ensuring the same liquidation guarantees as those in the lending protocols.

What is the purpose of the risk fund?

The purpose of the risk fund is to cover unexpected losses caused by liquidation failures, which can lead to under-collateralization and bad debt. By allocating a portion of the protocol reserve to this fund, Evoq ensures the stability of the protocol and protects users from financial losses.

What is the function of the delta mechanism?

The delta mechanism limits gas consumption and ensures that unmatched funds still earn an P2P APY.

Is there a fee to use Evoq?

Users can enjoy the supply and borrow APY displayed on the platform without any additional fee.