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Deposit Native Assets
DeFI users looking to leverage the multi-chain fungible assets (SuTokens) can deposit the whitelisted assets in the Sumer protocol across any of the supported networks
The protocol aggregates the deposit from each user into a pool of assets controlled by smart contracts, making it a fungible resource for the protocol while allowing users to withdraw their deposit at any time.
In return for the supplied assets, liquidity providers will receive corresponding sdrToken (e.g. sdrETH, sdrUSDC) which entitles them to redeem the supplied assets in the future.
The value of sdrToken will continuously increase reflecting the deposit interest rates, which is set as a function of the supply & demand of the assets.
The user can choose whether he wants to use the supplied asset as collateral or not. Assets supplied as collateral are factored in while determining the users borrowing power/ mint limit.
Users can lock multiple native assets types to a single position, diversifying collateral price exposure.
Key Protocol Parameter determined through the Governance process are;
- Optimal Utilization Rate of the liquidity pool
- Collateral Value
- Maximum Collateral Rate/ Loan to Value
- Liquidation Threshold
- Liquidation Incentive
- Deposit Interest Rate
- Deposit Cap
- Reserve Factor
The value of the Protocol parameters can be found here;
The definitions of the protocol parameters can be found here;