Lend/Supply
Last updated
Last updated
How to Lend in MultiLend?
Choose a lending pool, such as ETH/DAI (collateral token/supply token).
Set your lending price, which means the max amount that borrowers can borrow by deposit a collateral token.
Deposit supply token(DAI) to earn supply APY.
In MultiLend, lenders choose what valuation they are willing to lend against by depositing supply tokens into specific prices. They are credited with Liquidity Provider Balance units(LPB) that can be minted as non-fungible tokens (NFTs) which represent a transferable version of their balance.
All deposits above the Lowest Utilized Price (LUP) or Threshold Price (TP) of the least collateralized loan, known as the Highest Threshold Price(HTP), earn interest at the same rate, while deposits below earn no interest.
Each loan’s TP is set by the borrower and is the debt divided by the collateral.
A pool’s LUP is defined as the lowest collateral price against which someone is actively borrowing.
Lenders cannot withdraw their deposit in two cases. The first, if it would cause an otherwise safe position to be liquidated. The second, if there is an active liquidation and their deposit is temporarily frozen.
See more protocol detail in whitepaper.
