Users holding vePT will enjoy interest rate discounts when using Phemex's lending products, with different vePT holdings corresponding to different discount rates (ranging from 0% with no discount to 100% discount). Currently, the assets eligible for vePT interest rate discounts include USDT.
Please note: The maximum individual rate discount benefit is 10,000 vePT.
The rules for using vePT borrowing discounts are as follows:
- vePT discount ratio vePT Discountable amount → 1 vePT : 1 USDT
- Minimum borrowing rate APY with discount applied = current borrowing rate * 30%
- Minimum vePT holding amount >= 1
- Minimum borrowable asset amount >= 100 USDT
The formula for calculating vePT borrowing discounts is as follows:
- B vePT (u) is the vePT token balance of the user (u);
- T is the maximum amount of ASSET that can be generated at a discount through the Borrow interaction within the Protocol, per vePT held (per user u);
- Rd is the global discount rate, the discount on the borrow rate that the user will receive per discounted Asset Tokens, where 0 <= Rd <= 1;
- P(u) is the current principal borrowed by the user, in asset tokens;
- Pd(u) is the part of the principal at a discount (when vePT > 0); Pd(u) = B vePT (u) * T;
- Pnd(u) is the part of the principal that exceeds the discount (when vePT > 0); Pnd(u) = P(u) - Pd(u);
- R asset is the borrow rate for the asset for the user with discount applied, where 0 <= R asset <= 1.
Example:
If you hold 300 vePT and wish to borrow 1000 USDT at a normal USDT borrow rate of 5%, by using the vePT borrowing discount, the 700 USDT you borrow will be calculated at an interest rate of 5%, while the remaining 300 USDT will be calculated at 5% * 70%, which is 3.5%.
Repayment Rules
If you choose to repay in full, Phemex will calculate the amount of your loan that benefits from the discount based on the number of vePT you hold at the time of repayment and will directly show you the total repayment amount after the discount.
If you choose to make a partial repayment, we will prioritize calculating the interest on the loan that can enjoy the discount based on the number of vePT you hold at the time of repayment. For example, if you borrowed 1000 USDT in total and can enjoy a 100 vePT loan discount at the time of repayment, but you choose to partially repay 500 USDT, the interest you need to repay will be calculated based on 4005% + 1001.5%.
