Sumer.Money
  • Sumer.Money: The Most Capital Efficient Blockchain Liquidity Infrastructure
  • KEY PREMISE
    • The Future is Multichain
    • Sumer - the most capital efficient Liquidity Infrastructure
      • Sumer's Capital Efficient unified liquidity pool
      • Sumer Synthetic Assets as Money Multipliers
  • SUMER POINTS PROGRAM - A Call for the Tribe
    • Introduction
    • Points Based Program
    • NFT Based Program
    • Sumer Partner Program — Meter Points
    • FAQs
  • Sumer Lending and Borrowing Market
    • Introduction
    • Asset Group Classification
    • Collateral Rate by Asset Group
      • Understanding the applicable mint limit
    • Deposit Native Assets
    • Mint SuTokens
    • Borrow Native Assets
    • Repay SuToken Liability
    • Repay Borrowed Native Assets
    • ​Interest Rate Model
      • Standard Model
      • Jump (Kink) Model
    • Redeem SuTokens
    • Liquidation Mechanism
    • Risk Management
  • Tokenomics
    • Token Distribution
  • Definitions
  • Frequently Asked Questions
    • Sumer Protocol
    • Deposit Market
    • Minting Synthetic Assets (SuTokens)
    • Borrowing Market
    • Liquidation
  • TUTORIALS
    • How to Deposit assets
    • How to Collateralize Tokens
    • How to Mint SuTokens
    • How to Borrow assets
    • How to Stake Sumer LP tokens into Liquidity Program
    • How to stake Sumer Tokens into veSumer Program
  • SECURITY
    • Audits
  • PROTOCOL PARAMETERS
    • SUMER Money Market
  • DEVELOPERS
    • Smart Contracts
    • sdr Tokens
    • Price Feeds
      • RedStone Price Feeds on Zklink Nova
      • Pyth Price Feeds on Meter
      • Chainlink Price Feeds on Arbitrum
      • Chainlink Price Feeds on Base
  • GOVERNANCE
    • Introduction
Powered by GitBook
On this page
  • Collateral Rate or LTV
  • Borrow Limit
  • Borrow Interest
  • Timelock
  • Protocol Parameters

Was this helpful?

  1. Sumer Lending and Borrowing Market

Borrow Native Assets

Using the supplied assets or SuToken as collateral, users can borrow native assets (USDC, USDT, DAI, ETH, WBTC) from Sumer’s borrowing facility.

Collateral Rate or LTV

Each borrow position carries Collateral Rates (i.e. Loan-to-Value ratio), which signify the amount available to be borrowed for each collateralized asset.

A Collateral Rate of 75% means that the users can only borrow up to 75% of the value of their collateralized assets.

Applicable Collateral Rates while borrowing from Sumer are;

Intra Collateral Rate or LTV

The maximum value of asset that can be borrowed when collateral and borrowing asset belong to the same homogeneous group

For e.g. Borrowing ETH by supplying stETH

Inter Collateral Rate or LTV

The maximum value of asset that can be borrowed when collateral and borrowing asset belong to the different heterogeneous group

For e.g. Borrowing ETH by supplying USDC or Minting suETH by supplying USDT

Borrow Limit

The borrow limit is yielded as the sum of locked collateral value, times the maximum LTV ratio of collateral

Borrows can be made until the user's liability reaches their position's borrow limit. . One should observe that the borrow limit fluctuates with the oracle-reported deposit asset price.

Borrow Interest

The protocol charges users' interest while repaying the borrowed assets.

Each borrowing will carry a compounded interest determined based on the interest rate model specific to the borrowed asset.

The loan can be repaid anytime by the user. Any changes to the interest rate model will be made through the governance process.

Timelock

At launch, Sumer has Timelock introduced for withdrawal of borrowed assets.

Users cannot withdraw borrowed assets within the same block in which the collateral is supplied.

Protocol Parameters

Key Protocol Parameter determined through the Governance process are;

  1. Intra LTV (IntraCratemantissa)

  2. Inter LTV (InterCratemantissa)

  3. Borrow Limit (User)

  4. Interest Rate Model

PreviousMint SuTokensNextRepay SuToken Liability

Last updated 9 months ago

Was this helpful?