SLF Module

Overview

The SLF module is the protocol's lending and fund pool management core, implementing three major functions: liquidity provision, fixed-rate lending, and dynamic-rate lending. It combines user-deposited liquidity with borrower collateral positions through static (fixed-rate) and dynamic (floating-rate) modes, providing funding utilization and interest distribution mechanisms for Looper & YT.

Functions and Responsibilities

1. Liquidity Provision

• Allow liquidity providers (LPs) to deposit tokens in exchange for shares

• Support deposit (depositShares), share redemption (withdrawShares), and amount-based redemption (withdrawAmount)

• Automatically accumulate LP earnings (totalEarning) and distribute by shares

• Protocol can extract a portion as protocol income (protocolEarning)

2. Borrowing Mechanism (Looper & YT Only)

Support two modes:

Fixed-Rate Borrowing (Static Borrow)

• Borrowers agree on fixed interest rates and maturity times with the protocol

• Collateralize SLB when borrowing to obtain liquidity tokens

• Repay principal + fixed interest at maturity to redeem collateral

• Support premature processing to prepare for unstaking when approaching maturity

Dynamic-Rate Borrowing (Dynamic Borrow)

• Borrowing rates float in real-time based on fund pool utilization and market conditions

• Support additional borrowing (increaseDynamicBorrow), partial repayment (decreaseDynamicBorrow), and closure (closeDynamic)

• Interest rates and payable interest are updated before operations (upkeepUserDynamicInterest)

3. Liquidity Pool Management

• Liquidity pools are available liquidity for specific token strategies

• Manage pool interest rate algorithm contracts (StaticInterestProvider / DynamicInterestProvider) and cap parameters (CapArgs)

• Can be dynamically updated by protocol administrators:

  • Interest rate parameters (updatePoolInterestArgs)

  • Cap parameters (updatePoolCapArgs)

  • Interest rate algorithm contract addresses

Interactions and Dependencies

Liquidity Providers

• Deposit liquidity tokens to obtain shares

• Can redeem tokens and interest anytime

• Earnings distributed proportionally by shares

Borrowers (Looper & YT Only)

• Collateralize SLB to borrow liquidity tokens

• Can choose fixed-rate or dynamic-rate borrowing methods

• Can redeem collateral after repaying principal and interest according to rules

Liquidity Pools

• Manage correspondence between collateral tokens and liquidity tokens

• Configure interest rate calculation logic (static/dynamic)

• Track utilization ratios (borrowed amounts vs total available liquidity) for interest rate calculations and capacity management

Interest Providers

• StaticInterestProvider: Calculate term loan interest rates

• DynamicInterestProvider: Calculate demand loan interest rates