FAQs

In this guide, we will answer commonly asked questions regarding the Astrol Protocol.

What are fees?

Fees include borrowing interest, liquidation penalties and insurance fund fees.

Borrowing interest varies on the given asset, bank configuration, and market conditions. For the latest interest rates, refer to the asset list on Astrol.

When borrowed positions fall below requirements and are liquidated, the borrowers (a.k.a. liquidatees) are penalized through a liquidation fee. This fee amounts to 5% of the liquidated assets and is equally distributed between the liquidator and the insurance fund of the bank for the liquidated token.

Are there fees on flashloans?

No, flashloans do not incur fees. Flashloans bundle multiple borrow and lend instructions into a single transaction, but the borrows that occur within the flashloan get paid back immediately so no interested can be accrued.

How do health factors work?

Health factors indicate how well-collateralized your account is. A value below 0% exposes you to liquidation. You can find more info in Liquidation.

What does the “Simulating health / liquidation impact failed” error mean?

This error is related to stale oracles, which occur due to network congestion on Eclipse. When the network is congested, oracles update less frequently. Stale oracles are not the fault of Astrol. To prevent price manipulation, Astrol restricts certain actions when oracles are out-of-date.

What does the "stale oracles" error mean?

Astrol has chosen to use decentralized, trustless oracles. These oracles are managed by providers, like Pyth. During periods of blockchain congestion, oracle providers may struggle sending pricing data. If pricing data is stale during a user interaction, Astrol does not enable users to perform oracle-dependent actions. This is to prevent manipulation based on incorrect oracle prices. Astrol is working directly with Pyth on correcting these issues on behalf of the user.

Can I lend and borrow the same assets?

No. Lending and borrowing the same assets can create a feedback loop that distorts the true supply and demand, leading to potential instability in the protocol. Additionally, it can be used to manipulate interest rates and fees, undermining the integrity of the system.

What does “Weight” mean?

Weight represents the percentage of your assets that can be used as collateral, relative to their USD value. A higher weight means you can use more of your asset’s value as collateral for borrowing.

What does “LTV (Loan-to-Value)” mean?

LTV shows how much you can borrow based on your free collateral. A higher LTV allows you to borrow more against the value of your collateral.

What’s the difference between Weight and LTV?

Weight refers to how much of your asset’s value qualifies as collateral, while LTV indicates the borrowing capacity based on that collateral. Simply put, Weight relates to collateral qualification, while LTV deals with borrowing limits.

Why can’t I borrow the same amount I supplied/lent?

When you lend an asset on Astrol, its collateral value depends on these factors: • The asset’s market USD price, determined by an oracle. • A confidence band-adjusted price, based on the oracle’s 95% confidence band. • The asset’s weighted price, calculated as the confidence band-adjusted price multiplied by its deposit weight. Example: If ETH’s market USD price is $3,000, and the 95% confidence band is $2,950-$3,050, the adjusted price becomes $2,950. With a weight of 80%, the collateral value of ETH is $2,950 * 80% = $2,360.

If you encounter any problem or error that isn't listed here, please open a ticket in our Discord channel so we can address it!