DeFI users looking to leverage the new multi-chain fungible asset class can deposit the whitelisted assets to the protocol across all 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 cToken (e.g., cETH, cUSDC), which entitles them to redeem the supplied assets in the future.
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.
The user can choose whether he wants to use the supplied asset as collateral or not
Key Protocol Parameter determined through the Governance process are;
Optimal Utilization Rate of the liquidity pool
Maximum Collateral Ratio/ Loan to Value
Deposit Interest Rate
The value of the Protocol parameters can be found here