Lending Pools
A decentralized lending protocol that lets users lend or borrow assets without going to a centralized intermediary
A lending pool allows users to earn interest on their deposited funds by lending them to traders looking to increase their margin. The funds are pooled together and are lent out on a first-come, first-served basis. The borrowers are then charged an interest rate that is set by the platform. The lenders can withdraw their funds at any time and will receive their principal plus any accrued interest.
In order to create a stable Margin Trading platform there needs to be 2 separate Lending Pools. One being a SOL Lending Pool and the other being an NFT Lot Lending Pool.
Margin Positions are fuelled by collateralised Lending pools. Margin traders borrow from the Lending Pools, paying continuous interest to lenders. The liquidation engine operates on the margin positions equity, ensuring that lenders can withdraw their capital at any time.
The continuous interest paid to lenders is determined by the demand for their loans as indicated by the “spare inventory” of the pool, i.e. the percent that is currently not borrowed.
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