Osito Protocol User Guide

This guide provides step-by-step instructions for interacting with the Osito Protocol based on the three core participant roles.

Checking Token Eligibility

For a token to be eligible in Osito, it must meet these criteria:

  1. Verified Deployer: Deployed by Panda Factory or Ramen (trusted deployers that ensure fixed supply)
  2. Verifiably Burned LP: A portion of the token's Kodiak liquidity pool tokens must be burned

To check eligibility:

  1. Go to app.osito.finance
  2. Connect your wallet
  3. Search for your token in the "Token Search" bar
  4. The app will display eligibility status and key metrics (wBERA in pool, burned LP percentage)

For Token Depositors (Borrowers)

Creating a Position and Borrowing wBERA

  1. Access the Borrow Page:

    • Navigate to "Borrow" in the app menu
    • Connect your wallet

  2. Create a Position:

    • Select an eligible token
    • Enter the deposit amount (minimum 0.1% of total supply)
    • Click "Create Position" and confirm the transaction

  3. Borrow Against Your Position:

    • Select the created position
    • View your maximum borrowing capacity
    • Enter the amount to borrow (must be ≤ max capacity)
    • Click "Borrow" and confirm the transaction

  4. Monitor Your Position:

    • Keep track of your position's health
    • The max borrowing capacity may change as market conditions evolve
    • If borrowed amount > max capacity, your position becomes liquidatable

Repaying Loans

  1. Access Your Positions:

    • Navigate to "My Positions"
    • Connect your wallet

  2. Select Position to Repay:

    • Click on the position you want to repay
    • View current borrowed amount and accrued interest

  3. Repay Options:

    • Enter repayment amount or select "Repay Full Amount"
    • Ensure you have sufficient wBERA in your wallet
    • Click "Repay" and confirm the transaction

  4. Close Position (Optional):

    • Once fully repaid, you can close the position
    • Click "Close Position" to withdraw your collateral

For Token Stakers

Staking Tokens for Yield

  1. Access the Stake Page:

    • Navigate to "Stake" in the app menu
    • Connect your wallet

  2. Select Token to Stake:

    • Choose an eligible token
    • Enter the amount to stake
    • Click "Stake" and confirm the transaction

  3. Monitor Your Staking Position:

    • View your current stake amount
    • Track accrued yield
    • Note that yield is derived from borrower interest payments

  4. Collect Yield:

    • To collect accrued yield, click "Collect Yield"
    • Confirm the transaction
    • Yield is paid in wBERA

Unstaking Tokens

  1. Access Staking Positions:

    • Navigate to "My Stakes"
    • Connect your wallet

  2. Select Position to Unstake:

    • Click on the staking position
    • Enter amount to unstake or select "Unstake All"

  3. Unstake Tokens:

    • Click "Unstake" and confirm the transaction
    • Note: You can only unstake if total borrowed against the token remains below max borrow

For wBERA Lenders

Supplying wBERA to Earn Interest

  1. Access the Lend Page:

    • Navigate to "Lend" in the app menu
    • Connect your wallet

  2. Supply wBERA:

    • Enter the amount of wBERA to supply
    • Click "Supply" and confirm the transaction

  3. Monitor Your Lending Position:

    • View your supplied wBERA amount
    • Track interest accrued
    • Note that interest rates scale with utilization (0% at 0% utilization, 50% at 90% utilization, 10,000% at 100% utilization)

  4. Withdraw wBERA and Interest:

    • Enter the amount to withdraw
    • Click "Withdraw" and confirm the transaction
    • Note: You can only withdraw if sufficient wBERA remains in the protocol (if total borrowed < remaining supplied)

Liquidations

Understanding Liquidation Risk

  • Positions become liquidatable when borrowed amount > max borrowing capacity
  • This can happen if:
    • The token's price falls significantly
    • Other depositors withdraw collateral, diluting your borrowing power
    • Protocol token distribution changes, affecting the formula calculation

Performing Liquidations

  1. Find Liquidatable Positions:

    • Navigate to "Liquidations" in the app menu
    • View list of liquidatable positions

  2. Select Position to Liquidate:

    • Choose a position to liquidate
    • Ensure you have enough wBERA to cover the debt

  3. Execute Liquidation:

    • Click "Liquidate" and confirm the transaction
    • You'll receive all collateral in exchange for repaying the full debt

Risk Management Recommendations

  1. Monitor Your Positions Regularly:

    • Max borrowing capacity can change with market conditions
    • Consider borrowing less than the maximum to maintain a safety buffer

  2. Understand the Formula:

    • Borrowing limits are calculated based on worst-case scenarios
    • The formula simulates what happens if all circulating tokens are sold

  3. Diversify Your Positions:

    • Spread risk across multiple tokens
    • Don't concentrate all your borrowed amounts in a single position
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