Prime Feature: 10x

Why now?

On DeltaPrime every asset has its own potential borrowing power. This gives granular risk control in regards to asset volatility risks. When DeltaPrime started in Q1 2022, every asset had a borrowing power of 5x. This was a conservative borrowing power, both in comparison to both our own expectations as well as similar platforms. However, due to the novelty of this type of product, there was not enough historical data available to confidently increase the borrowing power on DeltaPrime.

Now, three years later, that data is there. Analyzing the chain over the past years we can simulate the bad debt accrued as a result of late liquidations, had the borrowing power of assets been 10x, 15x or even 20x for selected assets. At 5x DeltaPrime had not accrued any bad debt due to volatility, and, in retrospect, the same would have been the case had the platform offered 10x (and on some assets even 15x).

These years filled with black swans. From Do Kwon to SBF, from Celsius and Three Arrows Capital to the USDC depeg: if DeltaPrime had provided 10x leverage, it would not have led to any more bad debt due to late liquidations. And that gives confidence.

Prime Feature

And thus, a new Prime Feature is born. Prime Features bring unseen power to your Prime- or Savings account in exchange for $PRIME. Here, that power is your Borrowing Power, which, for a variety of assets (recognizable by a lightning bolt next to it), can be increased from 5x to 10x.

Increasing your borrowing power not only allows you to borrow more than before; it also increases your health! So whether you're a daredevil who likes to live on the edge, a delta neutral fanatic who realizes that 2x no price risk is still no price risk, or a risk-evader who just wants to see his health grow, 10x benefits you too.

How to activate 10x

Step 1: click on the little 10x button in the top left corner of your assets page.

This will pop up a 10x page, explaining more about 10x, which assets it will affect, what effect it will have on your health and how much PRIME you need to unlock this powerful feature!

If you don't have enough PRIME, it will let you know exactly how much you need to unlock it. Since PRIME is an asset in your Prime Account, you can either swap or deposit just like you would with any other token in your PA (note that in version one, pressing swap will route you to the DEX where it can be bought)

How much PRIME do I need?

Prime Features requires you to lock PRIME which you will get back at deactivation. The required amount to lock is visible in the 10x modals (as shown above) and equals 12 times your max borrowable amount / 1,000.

When 10x is deactivated, an unlock fee is deducted from the total PRIME amount returned. This fee is shown in the unlock modal and equals 5 PRIME per $1,000 borrowed.

So if you have $200 collateral, you will need to deposit 24 PRIME (= 12 * (200*10) / 1,000)) deposited to unlock the feature. If you borrow 7x over the course of a year ($1,400), you receive 17 PRIME (=24 - 5 * 1.4) back at the end of the year.