Themis 2.0 upgrade primarily enhances the entire LendingPool, which is no longer just a simple non-custodial agreement for NFTs to lend and borrow, but a new model that allows depositors access to borrowing power with higher liquidity and a more complete risk control system.
In M0's LendingPool, t-tokens are minted/burned 1:1 when supplied/withdrawn by the user. t-tokens can be transferred normally. Some t-tokens can be treated as collateral, and there are some restrictions on tToken transfers when the user's account has debt.
LendingPool uses a form of overcollateralization. This is designed to ensure that the protocol will have sufficient liquidity at all times.
When the user clicks Supply, they can choose to deposit any balance amount of tokens, after which the user will receive tToken 1:1 as a credential.
When depositing, users will see the changes to their BorrowPower after depositing assets:
- Each asset has a corresponding MaxLTV, which means that a deposit to this asset can borrow debt of the corresponding dollar value. For instance, assuming the LTV of DAI is 80%, then when a user deposits $100 in DAI, they will have access to $80 in borrowing power.
- Each supplied asset has a corresponding LiquidationThreshold, which means that depositing this asset will increase the LiquidationThreshold. e.g. if the LiquidationThreshold of DAI is 90%, then depositing $100 of DAI will increase the overall account LiquidationThreshold to $90.
- Each supplied asset has a corresponding LiquidationBonus, which means that if the asset is liquidated, your borrowing assets will be offset and you will be additionally deducted the corresponding percentage of collateral. For example, the Liquidation Bonus for DAI is 5%, you supply $100 in DAI, when the borrowing asset reaches $90 it will trigger liquidation, if liquidation happens, your $90 DAI will be used to offset the borrowing and $5 will be deducted from the reward to the liquidator. And at the end you will only be left with $5 in DAI.
Once the assets supplied by the user are used as collateral, they can be borrowed from the assets supplied by other users in the list. Borrowing at stable rate or variable rate will correspond to 1:1 casting for sToken or vToken.
After borrowing, users will see changes to their borrowings and risk alerts:
- You are able to borrow multiple debts. Their dollar value will accumulate and the interest will grow over time.
- The LiquidationThreshold of your debt value / value as collateral * the Loan Risk. When the Loan Risk reaches 100%, your debt can be liquidated by the liquidator and you can avoid this by paying it off early or adding collateral.
Some Token Categories have E-Mode mode between them, which can improve collateral efficiency for a short time. You can turn it on or off at the Borrow list.
When E-Mode is turned on, users will see the list change:
- Only the collateral value of stablecoins is counted as collateral and the Borrow list can only borrow stablecoins;
- You can use E-Mode parameters such as MaxLTV of 97% and LiquidationThreshold of 98.5%, LiquidationBonus is usually only 1%.
Themis 2.0 also supports the FlashLoan, which enables unsecured loans by fetching contracts, but the borrowing and repayment must be done in one block, otherwise the FlashLoan will be reverted. This feature is mainly aimed at users who are liquidators.
For the interface call of FlashLoan part, you can refer to our developer documentation
Contains My Supply, My Borrowing, Loan Risk, Net APY, Reward
- My Supply i.e. all supply balances.
- My Borrowing is the balance of all borrowings.
- Loan Risk is the risk value, when Loan Risk is greater than 100%, the account will be in liquidation.
- Net APY is the overall annualized rate of return, the combined annualized rate of return on deposits - cost of borrowing.
- Reward i.e. the sum of all mining rewards of M0.
Contains Asset, APY, Reward, Wallet/Balance, Can be Collateral/Collateral
- Asset is the type of asset;
- APY is the current estimated annualized return on the deposit;
- Reward displays the current estimated reward for deposits of that asset type;
- Wallet is the balance of the wallet and Balance is the balance of the supply amount;
- Can be Collateral is whether the asset can be used as collateral, and Collateral is the collateral status.
Contains Asset, APY, Reward, APY Type/Stable APY, Debt/Liquidity, E-Mode
- Asset is the type of asset;
- Reward is the expected annualized return on the current debt;
- APY is the variable interest rate of the pool;
- APY Type is the interest rate type of the debt and Stable APY is the interest rate of the stable debt;
- Debt is the debt, and Liquidity is the maximum liquidity in the current pool that can be Withdraw and Borrow;
- E-Mode button adjusts E-Mode off and on.