Exactly is a lending platform that provides an autonomous fixed and variable interest rate market, enabling users to frictionlessly exchange their assets' time value.
Exactly is a DeFi credit market that offers both variable and fixed interest rates using two types of pools per asset: the Variable Rate Pool and the Fixed Rate Pool. Users can supply assets to the Variable Rate Pool to increase its liquidity, which in turn provides liquidity to all the different Fixed Rate Pools as needed. Each deposit mints an exaToken that can be exchanged and redeemed for the original assets plus interests subject to available liquidity in the Variable Rate Pool. The Fixed Rate Pools allow users to deposit their assets based on their term horizon preference, and each new deposit generates an increase in the liquidity for that specific pool. The protocol also offers flexible fixed-rate deposits and loans, which allow partial or total withdrawals and repayments before maturity. Users can borrow assets from both Variable Rate Pool and Fixed Rate Pools using exaTokens as collateral, with each asset having its own Risk-Adjust Factor. Liquidations occur when the user's Health Factor falls below 1, and the Dynamic Close Factor determines the proportion of outstanding borrows that must be repaid to return the user to a solvency situation. The protocol does not guarantee liquidity for withdrawals but relies on its interest rate model to incentivize it and has a Liquidity Reserve Requirement as a fraction of the Variable Rate Pool deposits that cannot be borrowed and will only be available for withdrawals in the Variable Rate Pool.
The protocol can set a treasury fee that retains a percentage of the interest payments paid by borrowers.
Liquidity providers on Exactly receive earnings from four different sources: 1) variable interest fees paid by borrowers in the Variable Rate Pool; 2) commissions for providing early liquidity on fixed rate loans; 3) penalties paid by users who repay their debts after maturity on fixed rate loans; and 4) a profit of the liquidation fee.