Borrowing and Lending
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Term Structure Institutional Docs
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Select Wallet: Choose the wallet from which you want to initiate the borrow order.
Select Market: Select the market you wish to borrow from. The market specifies the borrowed token, network, and maturity date (e.g., USDC-ETH-31 JAN 2025).
Input Borrowing Rate: Enter the desired interest rate at which you want to borrow. This rate will be used to match your order with lending orders.
Input Borrow Amount: Specify the amount of tokens you want to borrow.
Select Collateral: Choose the collateral you want to use to secure the loan. This includes specifying the token and network (e.g., ETH-Arbitrum).
Input Collateral Amount: Enter the amount of collateral you want to provide. The required collateral amount depends on factors like the Loan-to-Value (LTV) ratio, borrowed amount, borrowed token, and collateral token. TSI uses over-collateralization to protect lenders and mitigate liquidation risk.
Input Minimal Matched Amount (Optional): Enter the minimum amount you want your order to be matched with. Your borrow order may be fulfilled by multiple lend orders. If this field is left empty, the system's default value will be applied.
Order Submission and Collateral Lock: After submitting the order, it enters a waiting state to be matched with a suitable lend order. The collateral amount is locked in your account until the order is canceled or matched.
Order Matching and Collateral Transfer: If the order is matched, you (the borrower) must transfer the corresponding collateral amount to the lender's wallet.
Loan Repayment and Collateral Return: On the maturity date, you must repay the loan principal plus accrued interest to the lender. After receiving the repayment, the lender will return the collateral to your wallet.
Select Wallet: Choose the wallet from which you want to initiate the lend order.
Select Market: Select the market you wish to lend to. The market specifies the token, network, and maturity date.
Input Lending Rate and Amount: Enter the desired interest rate at which you want to lend and the amount of tokens you wish to lend.
Select Accepted Collateral Tokens: Choose the collateral tokens you are willing to accept for your loan. This allows you to evaluate the risk of different collaterals and manage your lending preferences. Different collateral-borrowed token pairs have different LTV values.
Input Minimal Matched Amount (Optional): Enter the minimum amount you want your order to be matched with. Your lend order may be fulfilled by multiple borrow orders. If this field is left empty, the system's default value will be applied.
Order Submission and Asset Lock: After submitting the order, the specified amount of the lending token will be locked in your account until the order is canceled or matched.
Order Matching and Loan Transfer: If the order is matched, you (the lender) must transfer the loan amount to the borrower's wallet.
Loan Repayment and Collateral Return: On the maturity date, after the borrower transfers the loan repayment to the lender's wallet, the lender will return the collateral to the borrower's wallet.
TSI employs a secure and efficient on-chain settlement process to manage token transfers and guarantee the fulfillment of matched orders. This process utilizes smart contracts to minimize counterparty risk and ensure that both borrowers and lenders fulfill their obligations.
Real-Time Matching and Notifications:
Orders are matched in real-time on the TSI platform.
Both the lender and borrower are immediately notified of matched orders and can view the details in their respective consoles.
On-Chain Settlement Process:
Smart Contract Deposit:
After a match, the market taker (borrower or lender) is required to transfer their assets (collateral or loan principal) to a designated smart contract within 30 minutes.
The counterparty (lender or borrower) then has 11.5 hours to transfer their corresponding assets (loan principal or collateral) to the same smart contract.
Contract Execution:
Once the smart contract receives both parties' assets, it automatically executes the following:
Transfers the loan to the borrower.
Transfers the collateral to the lender.
Transfers the transaction fee to the TSI wallet.
Order Revocation:
If the counterparty fails to transfer their assets within the 11.5-hour window, the taker's assets are returned, and the matched order is revoked.
Transaction Monitoring:
Both lenders and borrowers can monitor the status of their transactions within their TSI console.
The platform provides real-time updates on the status of each transfer, including:
Pending: The initial state when a transfer is created but not yet processed.
Waiting for Start: The transfer has been validated and is ready to be initiated.
Waiting for Signature: The transfer is awaiting necessary signatures or approvals.
Failed: The transfer encountered an error and could not be completed.
In Progress: The transfer is currently being processed and executed.
Completed: The transfer has been successfully executed and finalized.
