1.4 Sashimi Lending
Introduction
Sashimi Lending is an algorithmic interest rate protocol of collateralised loan market. Sashimi Lending smart contract defines the interest rate model for user deposits and borrowings through algorithms. Users can deposit assets in the market, or collateralise assets to borrow from the market at any time. Depositors can get interest income, while borrowers need to pay an interest. The platform provides deposit and borrowing services with dynamic and floating interest rates.
Sashimi Lending's interest rate is determined by the supply-demand relationship of the market, the protocol provides fast and efficient transactions by cutting middlemen, removing borrowing time lag and operation restrictions.
Initially, Sashimi Lending will launch eight Supply and Borrow markets, users participating in every markets can receive $SASHIMI reward, which will be allocated to each market based dynamically on the proportion of interest generated in that market.
Contract Information
Lending Contract：https://etherscan.io/address/0xB5d53eC97Bed54fe4c2b77f275025c3fc132D770
Pools Contract:
Pool | Reward Token | Contract Link |
slETH | SASHIMI | |
slDAI | SASHIMI | |
slUSDC | SASHIMI | |
slUSDT | SASHIMI | |
slWBTC | SASHIMI | |
slYFI | SASHIMI | |
slELF | SASHIMI | |
slSASHIMI | SASHIMI |
Sashimi Lending interest rate model
1.Generation of deposit interest
After depositing the underlying assets, depositors can get a certain amount of slToken, which can be used to exchange for the underlying assets. The exchange rate of slToken to the underlying asset will increase over time after the deposit. The increased part in exchange rate is the interest earned by the depositor. The more borrowings on the platform, the faster the exchange rate increases.
2.Exchange rate of slToken
The exchange rate of slToken is calculated according to the following data (taking Lending USDT as an example)
totalCash= The total amount of Underlying Asset that has been put into the smart contract but has not yet been borrowed
totalBorrows = The total amount of outstanding loans (including accrued interest)
totalReserves=Total amount of reserves ( part of payable interests is used as reserves)
totalSupply=The total amount of slToken received by all depositors
ExchangeRate =（totalCash+totalBorrows-totalReserves）/ totalSupply
3.Utilization Rate
Utilization rate refers to the proportion of Underlying Assets borrowed out of total Underlying Assets:
UtilizationRate =totalBorrows /（totalCash+totalBorrows）
4.Borrow Rate
In the Sashimi Lending interest rate model, the borrow rate is calculated as the dynamic annualised interest rate that the borrower needs to pay. It will be affected by the following factors:
1.Base Rate
2.Utilization Rate
3.Multiplier
BorrowRate = UtilizationRate * Multiplier + BaseRate
5.Supply Rate
Supply Rate is the annualised interest rate that the depositors can receive. It will be affected by the following factors:
1.Borrow Rate
2.Utilization Rate
3.Reserve Factor
SupplyRate≈ BorrowRate * UtilizationRate *（1 - ReserveFactor）
In the Sashimi Lending interest rate model, the Base Rate, Multiplier, and Reserve coefficient of each token may be different, but they are all constants in the smart contract and will be disclosed in the contract code.
Admins are authorised to modify these constants in smart contract, the communities can propose adjustments as they see fit, and any adjustments can be found openly and transparently on the blockchain.
Liquidation rules
The price of collateralised assets will fluctuate. When the value of collateralised assets of the borrower is insufficient to pay the outstanding loan due to price fluctuations, account liquidation will be triggered. The collateralised assets will be sold by the liquidator at an agreed discount price to repay the loan. The price discount is an incentive for the liquidator.
The liquidation incentive is a constant in the smart contract.
Sashimi Lending Tutorial
Sashimi Lending
1. User Assets
Supply balance = User's deposit + Interest earned.
Borrow balance = User’s borrowing amount + User's payable interest
Net APY = Net Annual Interest Rate
Borrow Limit = The percentage indicates the healthy level of user account. The account is healthy when the percentage is low. If 100% of the borrowing limit is hit, the liquidation will be triggered.
2. Markets
In the 'Supply' and 'Borrow' lists, the Supply Market and the Borrow Market of each asset is displayed. Users can deposit to the Supply Market or borrow from Borrow Market.
How to use Sashimi Lending
1. Connect Wallet
Take MetaMask as an example: Open the lending page, click "Unlock Wallet" in the upper right corner. After the pop-up window appears, select the wallet you want to use. After the connection is successful, you can check wallet information by clicking the address tap in the upper right corner.
2. Deposit Assets
Select the token to deposit. Take $SASHIMI as an example, click SASHIMI, enable the supply, enter the amount to be deposited in the pop-up window. Then, click 'Supply' and confirm the transaction in the connected wallet.
Note: the smart contract needs to be authorised through the enabling pop-up window. After successful deposit, interest will be accumulated over time according to supply APY.
3. Collateral
Users can enable or disable the collateral through the switch of the asset list. After pledge, the Borrow Limit will change accordingly (Borrow Limit = Deposit Token Value * Loan to Value ratio).
Users can borrow money only after deposited collateral. Collateral is used to ensure the user has enough assets to repay the loan. If the outstanding loan exceeds the borrow limit, liquidation will be triggered.
Again, take $SASHIMI as an example: find SASHIMI in the supply market and click "Collateral" to enable the collateral feature. Then, Click "Enable SASHIMI as Collateral" in the pop-up window to authorize, and confirm the transaction in the connected wallet.
After the transaction is completed, the SASHIMI collateral switch will be turned on. If there is any SASHIMI deposit, the "Borrow Limit" percentage will increase accordingly.
Take $SASHIMI as an example, there will be two scenarios when disabling collateral:
Scenario 1: If the user account has no outstanding loan, or the disabling of collateral will not trigger liquidation, click the switch tap in the "Collateral" column, and authorize by clicking "Disable SASHIMI" in the following pop-up window.
After disabling, the switch will be turned off, and if there is SASHIMI deposit, the "Borrow Limit" percentage will be reduced accordingly.
Scenario 2: If disabling of collateral will trigger the liquidation, the switch cannot be turned off.
3. Borrowed Assets
Take SASHIMI as an example: click SASHIMI, enter amount in the borrow pop-up window, click "Borrow", and confirm the transaction in the connected wallet to complete the borrowing.
After successful borrowing, interest will be accumulated over time according to Borrow APY.
Note: you must deposit assets as collateral before borrowing assets, otherwise you can't take loan.
4. Withdrawal
Taking the withdraw all or part of SASHIMI as an example, users can click SASHIMI and select "WITHDRAW" tab in the deposit pop-up window. Then, enter the withdrawal amount, click the "WITHDRAW" button and confirm the transaction in the connected wallet.
Note: You can withdraw the principal and interest earned at any time. The maximum withdrawal amount = deposit amount - outstanding loan amount / Loan to Value ratio. That is, the collateral cannot be withdrawn.
5. Repayment
Taking the repayment of all or part of USDT as an example: click USDT and click the "Repay" tab in the repayment pop-up window. Enter the repayment amount and click "Repay", confirm the transaction in the connected wallet to complete the repayment.
Note: You must enable the smart contract first before you supply or replay. You can repay at any time, your repayment will include principal and accrued interest.
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