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
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  • Multiple Collateral Assets
  • Partial Repayment
  • Borrow Interest
  • Health Factor

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  1. Sumer Lending and Borrowing Market

Repay Borrowed Native Assets

Users can repay the borrowed native assets to the Sumer Protocol up to the borrowed balance.

Multiple Collateral Assets

By default, if multiple assets are supplied as collateral to get into a borrow position, the collateral available for withdrawal will be the asset with lower Loan to Value.

Partial Repayment

Users can make partial repayment of their borrowing liability. On partial repayment, the borrow liability will be non-zero and will continue to accrue interest.

Also, not all collateral is available for withdrawal on partial repayment of borrowing.

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.

Health Factor

The health factor represents the safety of your deposited assets against the borrowed assets and its underlying value. The higher the value is, the safer the state of your funds are against a liquidation scenario.

If the health factor reaches 1, liquidation of your deposits will be triggered. A Health Factor below 1 can get liquidated.

The health factor depends on the liquidation threshold of your collateral against the value of your borrowed funds.

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Last updated 10 months ago

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