Exactly

Lending

Exactly is a lending platform that provides an autonomous fixed and variable interest rate market, enabling users to frictionlessly exchange their assets' time value.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Exactly is a unique lending market that enables both variable and fixed rate pools within the same protocol.
What we like less
The protocol is centralized as it does not have a governance token yet, and protocol parameters are currently updated by the Risk Management Committee multisig (behind a timelock).
What it means for you
Enables users to exchange the time value of their crypto assets at both variable and fixed interest rates. This creates opportunities to earn a better return on assets or borrow at more favorable rates compared to existing money markets.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $11.5M (Rank #144)
  • TVL Ranking by Lending: #29
  • Blockchain: Optimism, Ethereum
  • Chain TVL
    • Optimism: $11.51M
    • Ethereum: $22.87K
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by several experienced auditors
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Latest protocol version launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Bottom 80% by total value locked increases risk
  • Multisig wallet controls protocol upgrades
  • Multisig requires only one signer (EOA wallet) which implies the protocol is highly centralized as control resides with just one admin
  • Timelock is less than 48hrs, which provides users with less time to exit if any malicious upgrades are approved
  • No governance token and/or contracts are fully immutable
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • Cross-collateral markets are exposed to systemic risks as each asset creates incremental risks for the platform as a whole
  • Solid controls in place to prevent risky borrowing
  • Solid mechanisms in place to ensure healthy liquidations
  • Solid methods to accrue protocol reserves
Things to know about Exactly

How Exactly works

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.

How Exactly makes money

The protocol can set a treasury fee that retains a percentage of the interest payments paid by borrowers.

How you make money on Exactly

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.