mev-toolkit/MEV_and_trading/lending
2024-10-15 10:48:15 +09:00
..
protocols add the crypto anarchist manifest by timothy c. may 2024-10-15 10:48:15 +09:00
collateralized.md add the crypto anarchist manifest by timothy c. may 2024-10-15 10:48:15 +09:00
composable.md add the crypto anarchist manifest by timothy c. may 2024-10-15 10:48:15 +09:00
README.md add the crypto anarchist manifest by timothy c. may 2024-10-15 10:48:15 +09:00
uncollateralized.md add the crypto anarchist manifest by timothy c. may 2024-10-15 10:48:15 +09:00

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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