⚖️ Market Mechanics

The market dynamics of the protocol is complex but it's simplified for the understanding of the user in this document.

Chiss Protocol is a programmable FX and Capital Markets Layer, merging currency conversion, lending, & settlement into one on-chain infrastructure. This means there are two main markets on the protocol — the FX and the Capital markets. Both markets have their distinct behaviour at different market conditions.

In order to make the most of it and also protect yourself from risks, you must understand some key concepts including utilization rate, dynamic Fee, Interest rate & your health factor.

Let's expand on these concepts.