mev-toolkit/lending at 056c266b2d826e4bbda3bbae28e283b51f3c60e4 - mev-toolkit - Gitea: Git with a cup of tea

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apo77yon 84f28cc41f

2023-03-22 22:45:38 -07:00

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Create silo.md

2023-03-22 22:45:38 -07:00

collateralized.md

Create collateralized.md

2023-02-09 18:10:10 -08:00

composable.md

add composable leverage

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README.md

Update README.md

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uncollateralized.md

Update and rename 101.md to uncollateralized.md

2023-02-09 18:09:13 -08:00

README.md

lending

tl; dr

alice and bob deposit funds into a lending contract (e.g., aave, maker, compound). while bob leaves his original collateral locked in the protocol, he can withdraw ~50% or more (depending on the protocol and asset) at some algorithmic rate that gets paid to alice (for providing the funds).
bob can then create a short position, reinvest for a levered long position, or withdraw money (without selling the underlying and being taxed). alice, on the other hand, generates a return on her capital.
liquidation is paid to the address that flags loans that crossed collateralization threshold (anyone monitoring the mempool and external oracles).

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