Borrower Workflow

This guide explains the borrowing process using PT-sUSDe as a collateral example in the Smart Contract. The workflow demonstrates how to deposit collateral, obtain a loan, and repay it, including all token conversions and fee calculations. The process includes collateral management, debt recording, token swaps, and final repayment with associated fees.

Borrowing Flow

Step 1: Collateral Deposit

The Borrower deposits Collateral Tokens into the Smart Contract.

• Deposit PT-sUSDe worth 50 USDC as collateral

• This initiates the borrowing process

Step 2: Token Generation and Conversion

Several automated steps occur in the contract:

• Initial Token Minting

  • Mints 45 FT tokens based on debt calculation

  • Debt = 50 USDC × 90% LTV ratio = 45 USDC

  • Mints GT NFT to record collateral and debt

• Token Swapping

  • Current XT/FT exchange rate: 4.99% in AMM

  • Swaps 8.19 FT for 40.9 XT

  • Remaining FT: 36.81 (45 - 8.19)

• Final Token Conversion

  • Converts 40.9 XT + 36.81 FT to 40.9 USDC, where 36.81 FT = 40.9 x 90% LTV ratio.

  • Based on 90% LTV ratio calculation

Step 3: Fee Calculation and Distribution

• Interest Calculation

  • Interest = 45 USDC (debt) - 40.9 USDC (borrowed) = 4.1 USDC

• Borrowing Fee

  • Fee = 4.1 USDC × 10% = 0.41 USDC

• Final Amount

  • Available borrowed amount = 40.9 - 0.41 = 40.49 USDC

  • Borrower receives 40.49 USDC and GT NFT

Step 4: Loan Repayment

The Borrower repays the loan:

• Repays 45 USDC debt

• Receives back PT-sUSDe collateral

• Contract returns 4.1 USDC to borrower

• GT NFT is burned after repayment

Notes

• LTV ratio is 90% in this example

• The XT/FT exchange rate varies, depending on the current AMM curve.