Satoshi Lending Protocol Workflow

This document outlines the high-level workflows and terminology for the Satoshi Lending protocol.

Terminology

Term	Definition
Collateral	Any non-USDC asset deposited to secure a loan.
Lenders	Users who supply assets to the pool to earn interest.
Borrowers	Users who provide collateral to take loans from the pool.
LTV (Loan to Value)	A metric used to assess the health of a borrower’s position. Formula: `total_borrow_value.div(total_collateral_value)`
Insurance Allocation Rate	(Also known as Reserve Factor) The percentage of the liquidation penalty diverted to the protocol’s Insurance Fund.
Liquidation Penalty	The amount deducted and sent to the liquidation account when a liquidation occurs.

Asset Types:
- Lending and borrowing are restricted to USDC.
- Collateral deposits are restricted to non-USDC assets.
Contracts:
- There is a single USDC contract for deposits.
- There are currently three non-USDC contracts for collateral deposits.
- The Near intents contract is used exclusively for liquidation.
Account Roles: A single account cannot function as both a lender and a borrower simultaneously.

Involves the deposit of USDC into the protocol by a lender.

The withdrawal of principal USDC along with any accrued interest by the lender.

A borrower deposits non-USDC assets to enable borrowing of USDC.

The repayment of borrowed USDC along with accrued interest by the borrower.

The withdrawal of deposited collateral by the borrower.

The act of borrowing USDC from the protocol, secured by the deposited collateral.