Depositing Native Assets
- 1.DeFI users looking to leverage the new multi-chain fungible asset class can deposit the whitelisted assets to the protocol across all supported networks.
- 2.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.
- 3.In return for the supplied assets, liquidity providers will receive corresponding cToken (e.g., cETH, cUSDC), which entitles them to redeem the supplied assets in the future.
- 4.The value of cToken will continuously increase reflecting the deposit interest rates, which is set as a function of the supply & demand of the assets.
- 5.The user can choose whether he wants to use the supplied asset as collateral or not
- 6.Key Protocol Parameter determined through the Governance process are;
- 1.Optimal Utilization Rate of the liquidity pool
- 2.Collateral Value
- 3.Maximum Collateral Ratio/ Loan to Value
- 4.Liquidation Threshold
- 5.Liquidation Incentive
- 6.Deposit Interest Rate
- 7.Deposit Cap
- 8.Reserve Factor
The value of the Protocol parameters can be found here
The definitions of the protocol parameters can be found here