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General

About Gable Liquidity Protocol

Gable is a decentralised liquidity market protocol build on Radix DLT where users can participate as borrower or supplier. The protocol will offer lending products for borrowers, and liquidity solutions for suppliers. Built on Radix DLT, the protocol offers transparency, security, and innovative solutions to traders and investors. This allows users to enjoy fast and efficient transaction processing, low fees, and transparent terms.
Currently, Gable offers flash loans as main lending feature, and liquidity collection via staking rewards as main supplying feature.

Borrow

What are flash loans

Flash loans are loans that are executed within a single transaction. This is made possible by one of Radix's main features; atomic composability. Atomic composability allows multiple operations to happen within a single transaction.
This means that tokens can be borrowed, returned, and used to fund activities, all within the same transaction. Flash loans open up opportunities for activities like arbitrage and leveraging capital for profit within a single transaction.The fast and secure nature of a flash loan decreases costs and makes the need for collateral redundant.

How do flash loans work?

Flash loans are a type of decentralised finance (DeFi) innovation that allows users to borrow funds without collateral, as long as the loan is repaid within the same transaction. The concept relies on smart contracts and blockchain technology, enabling instant borrowing and repayment. If the loan is not repaid by the end of the transaction, the entire transaction is reversed, ensuring the security of the lending platform.

What are flash loans used for?

Flash loans have multiple use cases in decentralized finance (DeFi). They are primarily used for arbitrage opportunities, where traders can exploit temporary price discrepancies across different platforms to make profits. Additionally, flash loans are used for collateral swapping, debt refinancing, and liquidations.
They also facilitate capital-efficient trading strategies, yield farming, protocol optimizations, and even as a tool for developers to test and deploy smart contracts. The flexibility and instant availability of flash loans make them a versatile tool for various financial activities within the DeFi ecosystem.

What is the difference between a flash loan and a traditional loan?

The main difference is that traditional loans require collateral and have repayment terms, while flash loans are uncollateralized and must be repaid within a single transaction.

What are the risks associated with flash loans?

Flash loans carry several risks, including the risk of price manipulation, arbitrage attacks, and transaction failures. Moreover, flash loans require borrowers to repay the loan within the same transaction, which can be challenging if the market conditions change rapidly. Improper risk assessment and lack of due diligence can also lead to substantial financial losses.

How can I participate in flash loans on your liquidity protocol?

To participate in flash loans on Gable liquidity protocol, you need to follow a few steps. First, connect your wallet to the protocol. Then, specify the loan parameters, such as the amount involved. Execute the flash loan transaction. Finally, repay the loan amount plus any applicable fees within the same transaction to complete the process. For a detailed elaboration and user guide, please visit the borrowers section.

How is the interest rate determined for flash loans?

Currently, a static interest rate is set. However, over time a switch to dynamic interest rates will take place. This dynamic rate will be determined by a combination of factors. These include the availability of funds in the lending pool, the current market conditions, and the perceived risk associated with the loan. In practice the interest rate will be based on algorithms that consider these factors in real-time, ensuring efficient allocation of funds and fair pricing for borrowers.

What happens if I fail to repay a flash loan?

The smart contract is designed to automatically revert all the transactions, canceling the loan and any associated actions. This ensures that the lending pool remains solvent and protects the interests of other participants in the protocol. Failing to repay a flash loan may also result in a loss of reputation within the decentralized finance community. As of now no financial penalties are imposed by Gable Liquidity Protocol in case of failure to repay.

How can I get support or assistance if I encounter any issues with flash loans on your platform?

If you encounter any issues and need assistance with flash loans on Gable, you can reach out to the customer support helpdesk: [email protected]. There you can request support and address concerns that you may face during the flash loan process. Additionally, you can use our social media channels to raise any questions.

Supply

How do I supply liquidity to Gable Liquidity Protocol

Gable Liquidity Protocol collects liquidity from staking rewards. A dedicated Gable validator node is in place that collects staking rewards on your (the staker's) behalf, and distributes it into the liquidity pool. Therefore, all you have to do is stake at Gable validator node to become a liquidity supplier.

How do I stake my tokens at your validator node?

You can stake at Gable validator node by returning to the 'supplier' page on gable.finance, connect your wallet, and use the 'provide liquidity' option.
Alternatively, you can find Gable validator node address in the RadixDLT explorer, and perform the transaction to the validator node directly via the Radix Wallet. You can find more detail on how to do this here.

What is the process for withdrawing my staking rewards from the liquidity pool?

Like supplying stake, you can withdraw stake by returning to the 'supplier' page on gable.finance, connect your wallet, and use the 'withdraw liquidity' option.
Alternatively, you can find Gable validator node address in the RadixDLT explorer, and perform the withdrawal of your stake from the validator node directly via the Radix Wallet. You can find more detail on how to do this here.

How often are staking rewards distributed to the liquidity pool?

Staking rewards are distributed to the liquidity pool at the end of each epoch, which is a predefined period of time during which network events and consensus take place.

What is the estimated interest rate or return on staked tokens?

The estimated return depends on two factors; the staking APY as offered by the Radix network, and the interest earned by the Gable Liquidity Protocol. Both are dynamic and can vary depending on various factors, including the protocol's design, the current market conditions, and the demand for staking services. For more information on the pay-out scheme on Gable visit this section. For a real-time overview please refer to the 'dashboard' page on gable.finance/dashboard.

Are there any fees associated with staking or withdrawing rewards from the liquidity pool?

Participating in the Gable liquidity protocol as a supplier involves a one-time transaction fee for staking, unstaking, and withdrawing liquid staking units (LSUs) on the Radix network. These transaction fees are generally low, making them a minor consideration. However, apart from these specific events, there are no additional fees required to engage as a supplier on the Gable liquidity protocol. We aim to provide a cost-effective and accessible platform for suppliers to contribute their assets without imposing unnecessary financial burdens.

What happens if there are any issues with the validator node? Will it affect my staked tokens or rewards?

If Gable validator node misses many consensus rounds the validators may begin to lose potential emissions XRD be excluded from participating in consensus for some time. As long as such problems are infrequent, validator node-runners and stakers won’t miss out on many emmissions. Penalties are calculated per epoch. With epochs occurring roughly every 5 minutes, a node-runner that brings their node back online quickly will also quickly pick back up earning rewards.

Can I withdraw my tokens at any time, or is there a lock-up period?

Instantly withdraw your LSU's from the Gable liquidity protocol and receive your entitled resources, including LSU's, XRD staking rewards, and XRD interest earnings, directly into your account. However, please note that unstaking from the Gable validator node is subjected to an unstaking delay period dictated by the Radix network. This delay period typically lasts 2,016 epochs, which equates to approximately 1 week. Rest assured that while there may be a delay in unstaking, your assets (staked XRD) will be securely held until the unstaking process is complete, ensuring the integrity and reliability of the Gable liquidity protocol.