How does it work?

Each supply/borrow currency pair is managed in a single vault, for example a wstETH-USDC vault, where a user can supply wstETH and borrow USDC. Vaults facilitate a few key functions, including:

• Liquidations: enabling user funds to be liquidated when the users position becomes unhealthy

• Lender Strategies: deploying user assets into the lenders where the best rates can be achieved

• Farm Strategies: deploying previously dormant capital (active capital) to earn interest on the users behalf

• Rebalancing: ensuring the vault position is always healthy by borrowing and repaying lenders when needed

• Harvesting: recognising earnings from the Farm Optimisations and enabling distribution to users

• Committing: updating user balances to recognise their latest position, including earnings from the farm strategy

• Tokenization: tokenizing user supply and debt positions