Gravita Protocol

Gravita Protocol is a decentralised borrowing protocol built on Ethereum that provides users with interest-free loans secured by both Liquid Staking Tokens (LST) and a Stability Pool (SP).  

Loans are issued in the form of minting GRAI, a token with similar volatility dampening mechanism as LUSD, and can be up to 90% of the value of a user’s collateral (99% in the case of bLUSD).

Gravita Protocol builds off Liquity’s economic model to ensure efficient borrowing and timely liquidations. A one-off borrowing fee is charged upfront on each new debt (or debt increase). In order to incentivize short-term borrowing, the fee is refunded if the user repays his debt before the expiry of six months (~182 days), pro rata for the time elapsed, but the minimum fee corresponds to one week worth of interest.