Vault
Vaults are composed of a collateral asset and a debt asset.
Jup Lend currently supports multiple vault pairs such as SOL/USDC, SOL/USDT, stJUP/USDC, or mSOL/SOL.
NFT
Each position in a vault is represented by an NFT. The NFT can be moved freely if needed. Each NFT represents the vault, including its debt and collateral assets.
Position Parameters
- Net APY - The Net APY earning from the vault (supply interest - borrow interest)
Formula NET APY (all amounts in USD) =
((supply Amt * supply APY) - (borrow Amt * borrow APY)) / (supply Amt - borrow Amt) - Collateral Factor - Represents what percentage of the collateral can be borrowed against. Also called LTV (Loan-to-Value)
- Liquidation Threshold - The ratio at which the position would be considered undercollateralized and could be liquidated.
- Liquidation Max Limit - The threshold above which 100% of your position gets liquidated instantly
- Liquidation Price - The collateral price at which the position would be considered undercollateralized and could be liquidated. Generally represented as liquidation price/current price of collateral
- Liquidation Penalty - If your position is liquidated, this penalty is an extra amount taken from your collateral to reward the person who repays your debt. For example: With a 1% penalty, for every $100 of your collateral sold during a liquidation, an extra $1 worth of that collateral is given to the liquidator.
- Ratio - Dollar value of debt / dollar value of collateral (D/C ratio)
- Supply APR - Rate earned per year for supplying the collateral asset
- Borrow APR - Rate to be paid per year for borrowing the debt asset
- Supply Absorb - The collateral absorbed by the protocol of a borrower who becomes undercollateralized
- Borrow Absorb - The borrower's debt settled during the process of collateral absorption in liquidation
Withdrawal Limit
- Base Limit - The minimum limit for a Vault's withdrawal. The further expansion happens on this base
- Current Limit - The limit until where you can withdraw. If it is $0 that means 100% of users can withdraw
- Expand Percentage - The rate at which Limits would increase or decrease over the given duration
- Expand Duration - The time for which the limits expand at the given rate
- Withdrawable - Amount available for instant withdrawal
- Withdrawal Gap - Safety non-withdrawable amount to guarantee liquidations
Borrow Limit
- Base Limit - The minimum available borrowing amount for a vault. The further expansion happens on this base
- Current Limit - The limit until where you can borrow.
- Max Limit - Maximum limit for a vault above which it is not possible to borrow
- Expand Percentage - The rate at which borrowing limits adjust over time.
- Expand Duration - The time window for which the limits expand at that rate.
- Borrowable - Amount available for instant borrow.