Denomination Parameters

Base Denom

  • Description: Signifies the IBC code of the token recognized in the Cosmos ecosystem.

  • Importance: Crucial for identifying the underlying token in transactions.

Symbol Denom

  • Description: Corresponds to the symbol associated with the token.

  • Importance: A human-readable representation of the token.

  • Example: on Ethereum, the Symbol Denom of Ether is represented as "ETH."


  • Description: Determines the number of decimal places used for the native token on the UX Chain.

  • Importance: Ensures accurate representation of token values within the network.

  • Example: An exponent of 6 means that 1 UX Token is represented as 1000000 in code.

Rate and Utilization Parameters

Base Borrow Rate

  • Description: Defines the minimum interest rate for borrowing an asset.

  • Importance: Influences the cost of borrowing.

  • Example: A Base borrow rate of 1% means that borrowers will pay at least 1% annual interest on the borrowed asset.

Kink Borrow Rate

  • Description: Sets the target interest rate at the kink utilization of the borrow asset.

  • Importance: Affects interest rate changes after the target utilization rate is reached.

  • Example: If Kink borrow rate is set at 80%, interest rates will change when borrowing exceeds 80% of the asset's capacity

Max Borrow Rate

  • Description: Represents the upper limit of the interest rate that borrowers can be charged.

  • Importance: Establishes a cap on interest rates to manage interest rate risk.

  • Example: Max borrow rate of 20% means borrowers can never be charged more than 20% interest on their loans.

Kink Utilization

  • Description: Determines the target utilization rate of a certain asset.

  • Importance: Influences the expected total borrowing of an asset.

  • Example: Kink utilization of 70% means the platform aims to maintain borrowing levels around 70% of the supplied assets.

Collateral and Liquidation Parameters

Collateral Weight

  • Description: Determines the proportion of an asset's total value that can be used to borrow assets.

  • Importance: Measures the borrowing power of collateral assets.

Liquidation Threshold

  • Description: Represents the maximum ratio of a borrower's position value to the collateral value before liquidation happens.

  • Importance: Manages borrower's liquidation risk effectively to prevent bad debts.

Liquidation Incentive

  • Description: Decides the reward when a liquidator successfully liquidates an undercollateralized position.

  • Importance: Motivates users to participate in maintaining the platform's health.

Min Collateral Liquidity

  • Description: Sets the minimum percentage of liquidity a collateral asset needs to maintain to allow liquidation to happen successfully.

  • Importance: Ensures collateral availability during liquidations.

Asset and Platform Risk Parameters

Reserve Factor

  • Description: Determines what portion of the interest earned from lending a token goes into UX Chain’s reserves, serving as an insurance fund.

  • Importance: Ensures the stability and sustainability of the lending platform.

Max Supply

  • Description: Establishes the highest amount of tokens that an asset can be supplied to UX Chain.

  • Importance: Manages risk exposure of any specific tokens on the platform.

Max Collateral Share

  • Description: Determines the max percentage of a token’s total collateral value against the total collateral value on the platform.

  • Importance: Acts as a risk control mechanism by limiting risk exposure to any specific tokens.

Max Supply Utilization

  • Description: Sets the highest percentage that an asset can be borrowed.

  • Importance: Caps borrowing capacity to maintain a minimum amount of pool liquidity of an asset.

Other Parameters

Oracle Reward Factor

  • Description: Dictates the portion of interest accrued on borrows sent to the oracle module to fund its reward pool.

  • Importance: Serves as the economic incentive for validators to submit accurate price information to UX.

Enable Msg Supply

  • Description: Controls the ability to deposit funds into the lending pool.

Enable Msg Borrow

  • Description: Determines if users can borrow funds from the lending pool.


  • Description: Used to completely eliminate an asset from the lending pool.