🎰Lending Market

Lending Market: Unlocking the Power of Flexible Borrowing and Lending

FABNT Vaults introduce the Lending Market, a revolutionary module within our platform that empowers users to engage in on-chain options trading while providing opportunities for borrowing and lending. Inspired by the successful Aave v2, the Lending Market in FABNT Vaults offers a seamless and efficient borrowing and lending experience. Let's dive into the details:

Parameters for the Lending Market: The Lending Market in FABNT Vaults supports various assets, including $XYZ-C, $XYZ-P, $XYZ, and $USDC. With these supported assets, users can explore a wide range of options trading strategies.

Key features of the Lending Market include:

• Flash Loans: Similar to Aave v2, the Lending Market in FABNT Vaults allows users to access flash loans. With flash loans, users can borrow up to 95% LTV (loan-to-value), which implies a theoretical 20x leverage limit on long positions. However, it's important to note that the actual leverage on a long position may be lower due to factors such as slippage, price impact, and fees on the Automated Market Maker (AMM).

• Interest Rates: FABNT Vaults employ a fixed interest rate model between epochs in the Lending Market. This model ensures transparency and stability for lenders and borrowers. Furthermore, the interest rates can be adjusted in the future through governance, enabling the platform to adapt to changing market conditions.

Actors in the Lending Market:

Lenders: Lenders play a crucial role in the Lending Market by depositing Basic Vault LP Tokens (e.g., $XYZ-C, $XYZ-P) or collateral assets (e.g., $XYZ, $USDC). By doing so, lenders can earn interest from borrowers and generate additional yield on their deposited assets.

Borrowers: Borrowers have the opportunity to borrow Basic Vault LP Tokens from the Lending Market. These borrowed tokens can then be sold on the AMM, allowing borrowers to take on long call or long put positions. This feature empowers borrowers to explore different trading strategies and capitalize on market opportunities.

Adding Liquidity into the Lending Market: After opening a short call or short put position, users will be prompted to "Boost" their positions by depositing Basic Vault LP Tokens into the Lending Market. By providing liquidity in the Lending Market, lenders can generate yields in the form of lending interest. This feature ensures that lenders can maximize their earning potential while contributing to the liquidity and efficiency of the platform. In the future, FABNT Vaults will also introduce the ability for users to deposit $XYZ and $USDC into the Lending Market, further expanding the earning opportunities.

Conclusion: The Lending Market in FABNT Vaults revolutionizes options trading by offering users a flexible platform for borrowing and lending. With flash loans, fixed interest rates, and the ability to deposit various assets, users can unlock the full potential of on-chain options trading. Join FABNT Vaults today and experience the power of flexible borrowing and lending in the options market.