tTokens

All assets supported on the LEND protocol by TEN Finance is integrated through a tToken contract, which represents the balance of the supplied token to the LEND protocol by the user. Through the minting of tTokens in the LEND markets, users are able to earn interest through the tToken’s exchange rate, which increases in value over time relative to the underlying asset and also gives the user the ability to use tTokens as collateral.

The tToken will be the primary method of interacting with the LEND protocol. At any time that a user on the LEND protocol mints, redeems, borrows, repays, liquidate or transfers tTokens, they will be doing so by using the tToken contracts.

Mint

Mint function is the process of converting an asset into the protocol asset, which will begin to accumulate interest based on the current supply rate of the asset. User will receive equal amount of tTokens for the underlying token being supplied to the market which is divided by the current exchange rate.

Redeem

The redeem functionality will convert the specified amount of tTokens into the underlying asset and return them back to user. The amount of tTokens a user receives is the equivelant to the tTokens redeemed, then multiplied by the current exchange rate. The amount that is being redeemed will be less than the user’s account liquidity and available liquidity in the market.

Redeem Underlying

Redeem underlying functionality will convert a user’s tTokens into the specified quantity of underlying asset to then return to the user. The amount of tTokens redeemed is the equivalent of the number of underlying tokens received then divided by the current exchange rate. The amount that is being redeemed will be less than the user’s account liquidity and available liquidity in the market.

Borrow

Borrow function will transfer assets from the LEND protocol to the user and will create a borrow balance which will begin to accumulate interest based on the borrow rate for that asset. The amout borrowed shall be less than the user’s account liquidity and the liquidity available in the market.

• Repay Borrow

  • The repay function will transfer assets into the LEND protocol, reducing a user’s borrow balance.

• Repay Borrow Half

  • The repay function will transfer assets into the LEND protocol, reducing the target user’s borrow balance

Liquidations

Any user that has their account equity go negative, will be subject to liquidation by other users of the LEND protocol that will return the user account liquidity back to positive territory. When liquidations occur, the liquidator may choose to repay some or all of an outstanding borrow on behalf of the borrower, thus in return, will receive discounted amount of the collateral that is held by the borrower, this is the liquidation incentive.

Liquidators are able to close up to a predetermined fixed percentage of any outstanding borrow of underwater accounts. When collateral is seized by the liquidator, the liquidator is given tTokens, which they may redeem as if they had supplied the asset themselves. A user will have to approve each tToken contract prior to calling the liquidate contract (the borrowed asset which the user is repaying) as they will be transferring funds into the contract.

Exchange Rate

Each individual tToken is convertible into a dynamic and increasing quantity of the underlying asset as interest is accruing in the market. Exchange rate of the tToken and underlying asset is as follows:

exchangeRate = (getCash() + totalBorrows() - totalReserves()) / totalSupply()

Total Borrow

Underlying assets currently loaned out in the market and total amount in which interest is being accumulated for suppliers of the market.

Borrow Balance

Anyone that borrows assets from the LEND protocol will be subject to interest being accumulated based on the current borrow rates of the market. Interest is accumulated at every block this be used retreive the current value of a user’s borrow balance with interest.

Borrow Rate

Anyone can query the contract to obtain the current borrow rate per block.

Supply Rate

Anyone can query the contract to obtain the current supply rate per block. The supply rate is taken from the borrow rate, reserve factor and amount of total borrows.

Total Reserves

The total reserve deposites that accumulate over time are the tTokens representing a portion of the interest set aside as cash which can be withdrawn or transferred through the protocol’s governance, which thus becomes the platform fee rewards! A portion of borrower interest accrues over time for the LEND protocol users and this is defined by the reserve factor.

Reserve Factor

The reserve factor is the part of the borrower interest that is converted into reserves.