Money Market

The Supralend Money Market enables over-collateralized lending and borrowing, allowing users to deposit assets to earn yield or borrow assets against collateral.

How It Works:

• Lending: Users can supply Asset Tokens to a lending pair. In return, they receive a redeemable claim that accrues interest over time. As borrowers pay interest, the lender’s balance of Asset Tokens increases proportionally.

• Borrowing: To borrow, users must deposit Collateral Tokens into a designated pair. They can then borrow Asset Tokens up to a specific Loan-to-Value (LTV) ratio. Each asset pair has an assigned LTV limit that governs how much can be borrowed relative to the collateral value.

Interest Rate Model:

Supralend uses a jump interest rate model:

• Interest rates increase gradually and linearly as utilization rises.

• Once utilization crosses a predefined threshold, the interest rates for both suppliers and borrowers increase sharply.

• This mechanism helps maintain healthy liquidity and incentivizes optimal capital allocation.

Liquidation:

If a borrower's LTV exceeds the Maximum LTV, their position becomes eligible for liquidation. This ensures the safety of lender funds and the solvency of the protocol.

Assets supportedOraclesContract Addresses