Glow Account
Composable Defi on PulseChain
Management
Collateral Operations
Add Collateral - Strengthen position safety by depositing additional assets, improving your Health Factor and increasing borrowing capacity
Remove Collateral - Extract excess collateral when your Health Factor allows (must remain above 1.0), optimizing capital efficiency
Trading Execution All swap operations route through Piteas protocol, ensuring optimal execution and minimal slippage. The integration provides access to the deepest liquidity pools on PulseChain while maintaining the security benefits of the whitelist system. You can rebalance positions, take profits, cut losses, or completely restructure your strategy - all while funds remain safely isolated.
Debt Management
Borrow Additional Funds - Access more capital up to your maximum leverage limits, enabling position scaling or new opportunity capture
Repay Debt - Reduce borrowed amounts to improve Health Factor, lower interest costs, or prepare for collateral withdrawal
Revenue Model
GLOW captures 25% of the interest spread between borrowing and lending rates.
Example Breakdown
Borrowers pay: 30% APY
Lenders receive: 20% APY
Protocol spread: 10%
Protocol revenue: 2.5% (25% of spread)
Revenue Distribution (on $1M borrowed annually = $25K fees)
70% ($17,500) → NEON stakers (profit sharing)
25% ($6,250) → Insurance fund & operations
5% ($1,250) → NEON buybacks & burns
Closing a Glow Account
Option 1: Swap all assets to the underlying and repay the debt
The protocol will exchange all the non-underlying asset funds to the underlying asset on Piteas and repay your debt. You will receive the remaining funds to your personal wallet.
Choose the maximum size of the slippage that you will tolerate in the options page in the top right corner, and click Swap and get tokens button. If the price falls by more than the slippage while your trade is being confirmed, the trade will be reverted.
Option 2: Close a Glow Account by repaying the debt and keeping assets
You repay the loan with your own funds. This means you have more funds on your personal wallet. After repayment is done, the assets which were on your Glow Account will be sent to your wallet. This option is possible only if your personal wallet balance in the denominated asset is at least of the amount required for repaying the debt.
Health Factor & Safety
The Health Factor is a numeric representation of your account's financial health and safety. It serves as the primary indicator of liquidation risk for your Glow Account position.
Critical Safety Rule: If your Health Factor drops below 1.0, your position becomes eligible for liquidation. The higher your Health Factor, the safer your position.
The Health Factor is calculated using the following formula:
Hf(t) = TWV(t) / (b(t) + interest_accrued(t))Where:
Hf(t)= Health Factor at time tTWV(t)= Threshold Weighted Value at time tb(t)= Borrowed amount at time tinterest_accrued(t)= Accumulated interest at time t
Mathematical Components
Total Value (TV)
The Total Value represents your Credit Account's total balance denominated in the underlying asset.
Formula:
TV(t) = Σ ci(t) × pi(t)Where:
ci(t)= Balance of the i-th asset in your credit accountpi(t)= Price of the i-th asset calculated in underlying asset (from oracle)
Threshold Weighted Value (TWV)
The Threshold Weighted Value applies liquidation thresholds and quotas to determine the effective collateral value for Health Factor calculations.
Formula:
TWV(t) = ci(t) × pi(t) × LTiWhere:
ci(t)= Balance of the i-th asset in credit accountpi(t)= Price of the i-th asset in underlying asset (from oracle)LTi= Liquidation threshold for the i-th asset
Liquidation System
When doing leverage with Glow, your Glow Account becomes the collateral for external protocols/actions: both your initial funds and the borrowed amount you got from the protocol. Glow Protocol sees which tokens your portfolio consists of and can determine its value at all times, which are always calculated in the underlying borrowed asset which you opened that Glow Account in.
When Liquidations Occur
Positions become liquidatable when Health Factor drops below 1.0, protecting lender capital.
Fee Structure (7% total)
3% → Passive lenders (insurance against bad debt)
4% → Liquidator reward (execution incentive)
Execution
GLOW team operates liquidation bots
Anyone can execute liquidations
Liquidations are there to protect liquidity providers' capital which by default shouldn't be exposed to directional market risk which traders & farmers take. As a leverage user - you can avoid liquidations, which also saves you from the fees paid to liquidators & the protocol.
What can I do if my Health Factor is close to 1?
In case you are in position which has correlated collateral to debt [like stablecoin debt to a stablecoin farm in Power Farming, or PLS debt to leveraged HEX position] - you can take higher leverage as the LTVs of your position <> debt are essentially correlated. As such, it allows you to take 9x+ leverage in some extreme cases. Still, beware that oracles can fluctuate, so don't max out.
1. Add collateral
The easiest method to improve your Health Factor is by adding more collateral.
2. Change your strategy or farm
If you are in a strategy that has a directional trade that's leading to the HF dropping, a possible better idea could be to change to a strategy with lesser volatile/base asset to preserve your Glow Account. If your debt is PLS and you are short PLS in a bull market... maybe join the PulseChain bull run, anon.
3. Decrease debt
Add some of the collateral back to the Glow Account in the form of the base asset you borrowed, this will help you lower your leverage and thus improve your health factor.
Practical Example
Let's walk through a Health Factor calculation:
Example Position
Collateral: 10,000 PLS (worth $1,000)
Borrowed: 4,000 PLS (worth $400)
PLS Liquidation Threshold: 85%
Calculation Steps
Total Value (TV):
TV = 10,000 PLS × $0.10 = $1,000Threshold Weighted Value (TWV):
TWV = 10,000 PLS × $0.10 × 0.85 = $850Health Factor:
Hf = $850 / $400 = 2.125
Result Analysis
With a Health Factor of 2.125, this position is in the Safe Zone and has significant buffer before liquidation risk.
GLOW grows, your rewards grow proportionally.
Revenue Sources Include:
Interest spread capture (25% of borrowing-lending spread)
Liquidation penalty fees (3% of liquidated collateral)
7-Day Vesting Protection: When new rewards are added to HoloVault, they distribute over a 7-day period rather than instantly. This prevents sudden dilution and whale manipulation while ensuring steady reward flow for existing stakers.
Emergency Withdrawal System
GLOW recognizes that life circumstances can change, making even well-planned long-term commitments potentially problematic. The emergency withdrawal system provides an escape valve while maintaining protocol stability through economic incentives.
Penalty Structure:
Regular stakes (unlocked): 1% penalty fee (100% sent to Auction Vault)
Locked stakes (any duration): 30% penalty fee (50% sent to Auction Vault and 50% to remaining stakers as rewards)
When to Consider Emergency Withdrawal:
Genuine financial emergencies requiring immediate liquidity
Major life changes affecting your investment timeline
Loss of confidence in protocol fundamentals (though consider partial rather than full exit)
In Holovault v2 users are rewarded with Lending POOL tokens (nPLS for example). This means you keep earning APY even after claiming. To get the underlying token (PLS for example), simply go to the appropriate pool and hit withdraw.
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