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Protocol Parameters and Upgradability

Since Kollateral is largely stateless, it is designed to be pausable in lieu of being upgradable. This means that new versions will be launch in parallel while older versions will be soft-deprecated.

We aim to make new versions backwards compatible with our IInvoker interface. Storing our Invoker contract address as an updatable field in your contract vs hard-coding should allow you to upgrade to later versions.

For the time being, the liquidity source priority order is set/updated by the protocol administrator. We aim to give higher priority to pools with larger liquidity and lower native fees. The current priority list is:

Asset1st Priority2nd Priority
ETHSolo (DyDx)
USDCSolo (DyDx)Aave
DAISolo (DyDx)Aave

Currently Kollateral charges an additional 6 bps fee on the liquidity that is sourced (on top of each pool’s native fee if applicable). All repayment calculation is handled by Kollateral and surfaced to your invokable contract via the KollateralInvokable helpers such as repay().