Dear OKX users:
In order to improve user experience and continue providing lenders and borrowers with more market-oriented and competitive interest rates, we have scheduled an upgrade on Dec 13, 2021 for OKX Savings and margin trading services.
This upgrade will optimize the mechanism for interest rate setting so that it is determined by market-wide bidding instead of the deposit-to-loan ratio.
After this upgrade, lending limits will increase tenfold and Savings users will only earn interest after their lending offers are successfully matched.
Margin trading users will be charged at the interest rate determined by bidding on the hour. There will be no interest rate differentials based on applicable service fees starting 4:00 PM December 13, 2021 (UTC). Borrowing limits will vary depending on applicable fee tiers, and will be increased to twice the current limits after the upgrade.
Meanwhile, we will gradually increase borrowing and lending limits according to market liquidity and loan demand.
For more details, please refer to Introduction to OKX Savings and Its Rules.
Savings service upgrade schedule:
1. Stage I: 3:00 PM December 13, 2021 (UTC) to 9:00 AM December 14, 2021 (UTC)
The purpose of this stage is to determine the amount and interest rate level when the bidding mechanism comes into effect.
The Savings service upgrade will start at 3:00 PM December 13, 2021 (UTC). Subscription and redemption will be suspended from 3:00 PM to 7:00 PM on December 13, 2021 (UTC).
Starting 4:00 PM on December 13 (UTC), all assets in Savings will be loaned out at an optimal interest rate based on the deposit-to-loan ratio until the bidding mechanism takes effect at 9:00 AM on December 14, 2021 (UTC). The interest payment schedule will change from 6:00 PM to 7:00 PM (UTC) every day to every hour. Any interest generated between 4:00 PM December 12 (UTC) and 4:00 PM December 13 (UTC), 2021 will be distributed between 6:00 PM and 7:00 PM December 13 (UTC). Interest generated from 4:00 AM December 13, 2021 (UTC) onwards will be paid on an hourly basis.
Subscription and redemption will resume at 7:00 PM on December 13, 2021 (UTC). Users will then be able to change the subscription mode and set a minimum APY for the subscribed Savings assets. The minimum APY set by users will determine whether the assets can be successfully loaned after the bidding logic officially takes effect.
2. Stage II: From 9:00 AM December 14, 2021 (UTC) onwards
The bidding mechanism will officially come into effect at 9:00 AM on December 14, 2021 (UTC).
Savings users can set a minimum APY for their orders. The bidding mechanism will match existing loan requests with the minimum APY set by Savings users in ascending order on an hourly basis until the total loan demand is satisfied. The minimum APY of the last successful bid will be the current APY.
- If the minimum APY is lower than the current APY, the loan will be given out at the current APY.
- If the minimum APY is higher than the current APY, the loan will not be given out for the hour.
- If the minimum APY is equal to the current APY, the loan may be partially given out or not given out at all. The actual loan amount will be decided on a first-come, first-served basis.
For example, users A, B and C each make a lending offer to satisfy a total loan demand of 200 BTC.
|
User
|
Bidding amount
|
Minimum APY
|
Actual lending amount
|
Current APY
|
|
A
|
100 BTC
|
10%
|
100 BTC
|
20%
|
|
B
|
200 BTC
|
20%
|
100 BTC
|
20%
|
|
C
|
100 BTC
|
30%
|
0
|
-
|
Since the minimum APY set by user A is lower than the current APY, user A's entire bidding amount of 100 BTC will be successfully given out and user A will earn interest at the current APY of 20% for the hour. User B's minimum APY is equal to the current APY, but user B will only satisfy the remaining loan demand of 100 BTC. The minimum APY set by user C is higher than the current APY, which means user C’s bid will fail and s/he will not earn interest for the hour. User C can then participate in interest rate bidding for the next hour.
For users whose lending offers are successfully matched on the hour T, the hourly interest for the corresponding loan amount from T to T+1 hours will be distributed immediately.
For margin trading users, interest is calculated and deducted on the hour at the current APY.
OKX reserves the right to take emergency actions in case of unexpected events during the upgrade. Users will be informed of any actions and developments via announcements and emails.
For any inquiries regarding this upgrade, please feel free to contact us in the official OKX Telegram group or via the Support Center.
OKX Team,
Dec 3, 2021