Try Quests to earn cryptoHow does BTC funding affect rates?
How does BTC funding affect rates?
Question
==How does BTC funding affect rates?==
Q. Create a dashboard that shows:
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- Supply and lending rates for at least five tokens in Aave V2, and
- Total amount of Wrapped BTC supplied over time.
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Provide analysis on the volatility of rates.
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Measure the correlation between USDC borrow rates and total wBTC supplied.
Method
- I use
flipside_prod_db.aave.depositsandflipside_prod_db.aave.withdrawstable and symbol = 'AAVE' to get :
- total AAVE supplied and withdrawn on Aave protocol.
- Daily AAVE supplied and withdrawn on Aave protocol.
- I use
ethereum.core.fact_event_logstable and EVENT_NAME='Staked'/'Redeem' and contract_address = '0x4da27a545c0c5b758a6ba100e3a049001de870f5' to get :
- Total AAVE staked and unstaked.
- Daily AAVE staked and unstaked.
Introduction
Ave is better known as a system of lending and borrowing pools. Users deposit assets they want to lend into Aave pools, and borrowers borrow from these pools by providing collateral. Borrowed tokens can be traded or transferred. To perform this operation, the Aave protocol has produced two types of tokens:
- aTokens offered to lenders so they can collect their deposit interest (i.e. aToken lenders are paid as a reward for depositing capital as loans)
- AAVE tokens, which is the native currency of this protocol. This token provides benefits to its holders; For example, people who borrow AAVE cryptocurrency will not be charged any fees. Borrowers who use the AAVE token as collateral will also have their fees discounted.
AAVE holders can view loans by paying this crypto as a fee, and borrowers who pay AAVE tokens as collateral can borrow more. Anyone can work with Aave protocol smart contracts without restrictions, deposit assets as loans and receive interest in return, or borrow assets from the system.
Users can deposit various cryptocurrencies on the Ava platform and receive profits with different percentages; Some cryptos offer higher percentages, but overall, the percentage of profits is constantly changing. To deposit assets for lending purposes, you need to connect to one of the Web 3 wallets such as Metamask. When this transaction is confirmed, you will receive aToken corresponding to your deposited asset and profits will be calculated and paid with these aTokens.
Users can borrow from any crypto pool available in the Aave protocol. These loans are offered in both fixed and floating interest rates. For borrowing, users need web 3 wallets like Metamask.
Before borrowing, users must deposit some cryptocurrency as collateral in the protocol. You can get a loan in proportion to the deposit. This platform uses the Over Collateralized system; This means that if you want to borrow $100, you must deposit $150 as collateral in the system. After depositing the collateral, you can find the currency you want to borrow on the first page of Ave. If you click on Borrow, you will be connected to your Web3 wallet and your loan will be transferred there. You should also specify the interest rate through your wallet.
You must repay whatever currency you borrow; For example, if you borrowed 1 ether, you must return the same 1 ether plus interest to the protocol to release your collateral. Also, no specific time is set for loan repayment; As long as your situation is safe (i.e. you don't face the risk of liquidation), you can use the loan. You might repay the loan the next day, you might do it in a year. But you must be fully familiar with the risks of this system so as not to suffer losses.