🔍The Trinity of Vaults
The lending protocol consists of 3 pivotal vaults to govern the relationship between lending and borrowing.
These vaults are:
CREDIT: an ERC4626 vault in which a lender deposits their assets to earn yield from compound interest!
COLLATERAL: an ERC4626 vault in which a borrower deposits their assets as security in order to draw down a loan!
DEBT: an ERC4626 rebasing vault that manages the creditor/debtor balances between CREDIT and COLLATERAL vaults. As interest accrues, the vault automatically increases associated balances through the act of rebasing the vault token!
Loans in USDT with MEME secured collateral
Lenders deposit USDT into the CREDIT vault and receive an ERC4626 cUSDTMEME token to represent their share of the pool which accrues compound interest from borrowers!
Borrowers deposit MEME into the COLLATERAL vault and receive an ERC4626 cMEME token to represent their share of the pool which represents their collateral in the vault!
When a borrower draws down on a loan in USDT, not only does the borrower receive USDT but also receives a rebasing ERC4626 dUSDTMEME token representing their debt!
Lenders deposit and lock USDT into the CREDIT vault and receive an ERC4626 vsUSDTMEME token to represent their share of the pool which accrues compound interest from borrowers as well as a proportion of the liquidation profit!
Borrowers deposit MEME into the COLLATERAL vault and receive an ERC4626 cMEME token to represent their share of the pool which represents their collateral in the vault!
When a borrower draws down on a loan in USDT, not only does the borrower receive USDT but also receives a rebasing ERC4626 dUSDTMEME token representing their debt!
Loans in MEME with USDT secured collateral
Lenders deposit MEME into the CREDIT vault and receive an ERC4626 cMEMEUSDT token to represent their share of the pool which accrues compound interest from borrowers!
Borrowers deposit USDT into the COLLATERAL vault and receive an ERC4626 cUSDT token to represent their share of the pool which represents their collateral in the vault!
When a borrower draws down on a loan in MEME, not only does the borrower receive MEME but also receives a rebasing ERC4626 dMEMEUSDT token representing their debt!
Lenders deposit and lock MEME into the CREDIT vault and receive an ERC4626 vsMEMEUSDT token to represent their share of the pool which accrues compound interest from borrowers as well as a proportion of the liquidation profit!
Borrowers deposit USDT into the COLLATERAL vault and receive an ERC4626 cUSDT token to represent their share of the pool which represents their collateral in the vault!
When a borrower draws down on a loan in MEME, not only does the borrower receive MEME but also receives a rebasing ERC4626 dMEMEUSDT token representing their debt!
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