FAQ
General Questions
What is WeissFi?
WeissFi is a decentralized finance (DeFi) protocol built on the Sui blockchain that allows users to borrow WEIS against their SUI holdings while setting their own interest rates. It also enables users to earn yield through Stability Pools, all while benefiting from transparent and efficient liquidations.
Why use WeissFi instead of traditional lending platforms?
WeissFi introduces user-controlled interest rates, efficient liquidations, and no fixed repayment schedules—giving borrowers and depositors full control over their financial strategies.
Borrowing FAQ
How do I borrow WEIS on WeissFi?
Deposit SUI as collateral.
Choose how much WEIS you want to borrow (keeping an eye on your Loan-to-Value ratio).
Set your preferred interest rate—higher rates lower your risk of redemption.
Confirm & sign the transaction to receive WEIS in your wallet.
Manage your loan in the dashboard at any time.
What is Loan-To-Value (LTV)?
LTV is the ratio of borrowed WEIS to the USD value of your collateral.
A higher LTV increases the risk of liquidation, while a lower LTV gives more security.
What is Liquidation Price?
The Liquidation Price is the price at which your collateral is no longer sufficient to cover your loan, triggering liquidation.
If the price of SUI falls below this level, your loan may be liquidated.
How do liquidations work?
If your LTV exceeds the maximum threshold (91%), your collateral is automatically liquidated.
Your debt is repaid.
Your collateral is transferred to Stability Pool depositors at a discount.
How do I repay my loan?
Simply go to the dashboard and click Repay Loan.
You can repay any amount at any time—there is no fixed schedule.
Earning FAQ
How do I earn yield on WeissFi?
By depositing WEIS into Stability Pools, you earn interest from borrowers and liquidation gains from undercollateralized loans.
Where does the yield come from?
Interest Payments: Borrowers pay interest, and 50% of this is distributed to depositors.
Liquidation Gains: If a borrower is liquidated, depositors receive their SUI collateral at a discount (~2.5%).
What are Stability Pools?
Stability Pools are decentralized liquidity pools where users deposit WEIS to earn rewards from borrower interest payments and liquidations.
How is my risk managed in Stability Pools?
Each Stability Pool is tied to a specific collateral (e.g., SUI). This allows you to choose your preferred risk exposure.
Redemptions FAQ
What are redemptions?
Redemptions ensure WEIS maintains its $1 peg by allowing users to swap WEIS for SUI at face value.
If WEIS falls below $1, arbitrageurs redeem it for SUI, reducing WEIS supply and helping restore the peg.
Redemptions start with the borrowers paying the lowest interest rates.
How do redemptions affect borrowers?
If your loan is selected for redemption, your debt is reduced, and an equivalent amount of your collateral is used for repayment.
You do not lose USD value, only your debt and collateral adjust proportionally.
You keep a small redemption fee from the redeemer.
Can I protect myself from redemptions?
Yes!
Set a higher interest rate to place yourself further down in the redemption queue.
Monitor WEIS price—if WEIS is above $1, redemptions don’t happen.
What is the redemption fee?
A small fee (~0.5%) is applied when someone redeems WEIS for SUI. The fee stays within affected borrowers’ Troves, making it fairer than other systems.
Additional Questions
Can I adjust my interest rate after borrowing?
Yes! You can adjust your interest rate at any time in the dashboard.
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