Many borrowing protocols offer a variable borrowing APR that is decided based on supply and demand. This can be quite inconvenient for users, since they need to constantly check their position to avoid liquidation. As shown recently, variable APR can increase quite drastically and suddenly.
With Gravita Protocol you can enjoy interest-free borrowing with a low one time maximum fee for positions longer than 6 months. Short term borrowers will be incentivized to use the protocol with a partial refund mechanism.
Fee refund for short term borrowers
When a user repays his debt before the expiry of six months (~182 days), the fixed borrowing fee is refunded pro rata for the time elapsed, but at least one week worth of interest.
The smart contract controls this decaying refund by immediately remitting the minimum fee (either to the Treasury or to a staking contract) and maintaining a record that includes the refund balance and the timestamp of the last change in the amount from the timestamp of the expiry date.
LSTs and other yield bearing assets
Your LST continues to accrue in value against ETH (generally between 3 and 8% APR) while they are being used as a collateral. This provides an earning opportunity both from the use of GRAI and the income generated by your favourite LST. If the price of ETH remains stable or grows and your favourite LST does not de-peg, this means that your LTV decreases as time goes on, further reducing your risk of liquidation or redemption.