Sumer's Capital Efficient unified liquidity pool

Sumer introduces a novel risk engine that considers the correlation among assets when underwriting risks. Unlike traditional lending protocols which determine borrowing power based on assets supplied as collateral, Sumer intelligently matches users’ liability based on the asset supplied as collateral to maximize users’ borrowing power without adding additional risks. Correlated assets in a user position (deposit wstETH, borrow ETH) get significantly higher LTV maximizing capital efficiency and asset utilization than non-correlated assets.

Let us look at a typical use case in DeFI;

DeFI User Position	AAVE E-mode	Silo/ Isolated Lending	Sumer
Deposit wstETH, borrow ETH	93% LTV	93-95% LTV	92% LTV

Let us now look at the flexibility Sumer providers around typical scenarios surrounding our use case;

Scenarios	AAVE E-mode	Silo/ Isolated Lending	Sumer
User has excess collateral and needs Stable borrowing	Remove collateral, open new position	Remove collateral, open new position	81% LTV with same wstETH collateral
User has low position health, holds excess stable	Deposit USDC (75% LTV) to increase health	Not feasible	Deposit USDC (82.5% LTV) to increase health
Increased demand for LRTs, potential looping with wstETH	Lower LTV for wstETH-LRT looping; not all assets are supported in e-mode	Not Feasible	LRT Users will deposit LRT to borrow wstETH at 90% LTV increasing wstETH yield – a win-win for LRT users and Sumer Users
Temporary wstETH depeg	Close Position	Close Position	Provide any supported asset as Collateral temporarily

As evident from above, Sumer’s capital efficient unified liquidity pool offers flexibility to users to manage their positions unlike existing lending and borrowing protocols.