❔FAQ

What is Ion Protocol?

Ion Protocol is a price-agnostic lending platform built to support staked and restaked assets. Using provable validator data, Ion allows users to borrow LSTs and other staked/restaked assets against their LSTs and restaking positions.

• All loan positions in Ion are price-agnostic, and their parameters (interest rates, LTVs, position health, etc.) are determined by consensus layer data and secured with ZK data systems.

• This means liquidations are triggered by changes in consensus layer state, not by price oracles.

• This verifiable Proof-of-Reserve system is enabled by a network of oracles running our ZKML (zero-knowledge machine learning) framework which enables trustless verification of consensus layer state and robust validator credit ratings.

The above investments in trustless infrastructure enable us to support a wide plethora of assets without sacrificing on capital efficiency.

How do I gain access to the whitelist?

During Ion's multi-phase mainnet launch, the first users to interact with the protocol will be whitelisted to minimize the risk within the platform while providing an opportunity for early users to take advantage of Ion's product offerings.

To join the whitelist, provide active feedback on the product, interface, and interact with the community in our Discord!

How do I interact with Ion?

The mainnet release will showcase multiple LST/LRT Markets and a rewards tracker.

• Deposit Liquid Staking Tokens (LSTs) into asset-specific vaults.

  • Select any combination of markets to deposit into, or deposit into all markets.

  • By selecting a combination of markets, lenders can specify their desired risk profile.

  • Once you've selected the market for you, deposit your LST and passively earn rewards in ETH.

• Deposit Liquid Restaking Tokens (LRTs) into vaults that compound your restaking reward exposure.

  • Deposit your preferred LRT.

  • Choose the designated multiplier for your position.

  • View and manage your position all from the Ion interface.

What can I do on Ion?

• Lenders - Earn the staking yield + borrow yield + additional LRT + yield rewards

• Borrowers - Boost your restaking rewards (EigenLayer Points + Collateral Provider Points) and lock in your position for boosted restaking yield once AVSs reach the market.

  • Borrowers should ensure their ability to make interest repayments to maintain their boosted restaking rewards.

What are the risks of Ion?

• Smart contract risk - Smart contract risk is common in any DeFi protocol. We've taken all the necessary preventative measures and more including thorough audits with top auditors, audit competitions, and formal verification.

• Liquidation risk - Borrowers on Ion are only exposed to liquidation risks in the event of a large correlated slashing that significantly reduces the ETH reserves of a provider's validator set. Or if they do not make interest payments on time.

Is Ion a liquid re-staking provider?

Nope! We're a lending platform aimed at allowing people to borrow against validator-backed assets such as LRTs. We love chatting with providers though and recommend to reach out to us on Twitter if you're interested in pursuing an integration.

How can I provide feedback and stay updated on Ion Protocol developments?

You can join the Ion Protocol Discord community to provide feedback and follow Ion Protocol on Twitter for updates.

• In our Discord make sure to leave your feedback.

• Feel free to share your experience with others as well!

How long will it take me to earn a ref link?

Anyone who gains access to Ion via referral link can generate a referral link of their own after earning 120 Ion Points. Given that our points accrue at 1 Ion Point per ETH deposited per hour deposited, 120 Ion Points can be earned with 5 ETH of value in Ion in 1 day.

If I earn Ion Points via an integration, what does this mean for me?

Anyone who earns Ion Points via an integration can create a referral code to enter Ion. If they have already earned 120 Ion Points, then they will immediately be able to generate a referral link.

How does using a referral code contribute to my Ion Point earnings?

Number of Referrals	% Increase in Points Earnings from User Deposits
1	1.5%
5	3%
10	8%
15	10%
20	12%
25	15%
30	20%
50-100	25%
100+	30%

For borrowers:

$$24(debtValue*(1 + (percentIncrease / 100)))$$

For lenders:

$$240(depositValue *(1 + (percentIncrease / 100)))$$

What is the math behind Ion Points?

Lender Side: 10 points per ETH per hour deposited:

$$exchangeRate * supplyDepositAmount * hoursDeposited$$

Borrow Side: 1 point per ETH per hour of collateral:

$$exchangeRate * collateralDepositAmount * hoursDeposited * leverageMultiplier$$

$$leverage Multiplier = \frac{1}{1 - LTV}$$