Lending Pool

Decentralized Pooling Model
There are 2 basic models in decentralized P2P leading: the transaction model and the pooling model.

The main advantage of the transaction model is that it supports the personalization of orders. But the drawback is that it requires an efficient matching mechanism.

With current blockchain technology and performance, the pooling model is the superior choice for P2P lending. It is independent of market depth and matching efficiency. The protocol never terminates once deployed. Good thing Themis utilizes the pooling model 😉
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Main Functions 
Deposits & Earnings
The interest rate payment on loans - depositors share the interests paid by borrowers corresponding to the average borrow rate times the utilization rate. The higher the utilization of a reserve the higher the yield for depositors.

A user makes a deposit. The contract mints the corresponding SP-token. The deposited asset is anchored 1:1 with the SP-token. And is burned when the user withdraws funds back to the Lending Pool.
​SP-token​
SP-tokens can be transferred and have the following characteristics：
1:1 anchoring of the deposited token at the time of casting；
When an SP-token is transferred from common address A to common address B, address A receives the interest and reward of the current settlement；
When a contract address transfers an SP-token to a common address, the common address receives the interest and reward for the current settlement；
When a contract address transfers an SP-token to a contract address, the protocol receives the interest and rewards of the current settlement.
SP-tokens are Interest Bearing Assets and have  the following utilities:
Direct SP-token transfer - depositing to a secure address；
SP-tokens can be transferred to a DEX contract when the user needs to offset liquidity via a DEX；
Receive a certain amount of revenue when using tokens to swap out assets 1:1 from DEX contracts.
AMMs providing SP-tokens/token liquidity will potentially be rewarded by the agreement；
When the market's SP-token-to-token exchange ratio is not equal to 1:1, there will be arbitrageurs who quickly bring back its price.


Algorithmic Floating Rate
The interest depositors receive from the Lending Pool is currently token-based. Interest is calculated through the utilization rate of the pooled tokens.
To calculate the depositor's interest rate you need to get the utilization rate first：U_a=borrows_a/(cash_a+borrows_a)
The Borrow contract will agree on a real-time interest rate with the borrower：BorrowInterestRate_a=2.5%+0.2U_a
Then the real-time interest rate of LendingPool is：InterestRate_a=U_a*BorrowInterestRate_a
Interest Settlement
Themis Protocol's interest is settled based on actual interest returned and there is no misappropriation of depositors' principal as interest. The actual interest rate will change each time the deposit pool is updated. Since the pool is regenerated every update, there are instances when the actual interest rate is slightly higher than the marked interest rate. There are also situations where the actual interest rate is slightly lower than the marked interest rate when the deposit is settled before the borrower returns the interest.
Flexible Deposit/Withdraw  & Liquidity Exchange
The ability to withdraw funds at any time when the total amount beingwithdrawn by the user is less than Reserve；
 When the Lending Pool is over-utilized, the marked annualized interest rate increases, but the liquidity risk increases； 
At that time, a 1:1 liquidity pool of SP-token/token can be established with the help of a third-party liquidity protocol such as AMM, CFMMS.
​Vaults​
In order to reduce the liquidity risk for regular users, Themis has added Vaults deposits.
Vaults deposits are open to users with long-term deposits ； 
Vaults deposits are deposited into the lending pool； 
Each deposit mints an NFT for locking the SP-token； 
Linear release of the SP-token after the selected deposit cycle； 
NFTs minted from SP-token locking belong to the user； 
Additional rewards will be given for choosing Vaults deposits. 
Interface Information 
Interaction 
The first time a wallet is linked, the dashboard will show an overview of all current markets； 
After clicking on ‘Lend’, users can make a deposit via ‘Deposit’. The initial deposit requires authorization of the asset being deposited;
Deposit interface
When a deposit is completed, the amount for that asset-type will be displayed in 'My Supply'； 
Users can add deposits or withdraw assets via the ‘Position’ button..
Deposit complete
Automatic settlement of interest and rewards on withdrawals or account changes；
Rewards can also be collected through the TMS icon next to the black moon icon in the upper right corner；
Increase Liquidity
Data Description
Type
Description 
Calculating Method
Asset
 Asset types
Read contract address and information
Market size
Dollar value of total deposits
(CurSupply+CurBorrow)*
Target_Value
Borrowed
Dollar value of total borrowing balance
CurBorrow* Target_value
Supply APR
Current annualized borrowing rate
U_a* BorrowInterestRate_a
Yield APR
Current Deposit Reward Annualized Yield
TMS_reward_Value*2,073,600/User_Suppy*target_value
Wallet Balance
Wallet balance of user assets
Read address Token information
Reserve
Dollar value of deposit pool asset balances
CurSupply*target_value
Reward
Current rewards available for collection in the pool
Read address Token information
Total market size
Dollar value of the total balance of all deposits
Accumulating all market sizes
My share
The weight of the user in the asset
User_supply/CurSupply
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