📒
Glossary
- 1.Liquidity provider: A user who adds liquidity to the Open protocol through the process of asset deposits.
- 2.Borrower: A user who borrows from the protocol.
- 3.Collateral: A token(s) deposited by a borrower as a security deposit to secure a loan.
- 4.Supply apr: Annualised interest rates earned by liquidity providers.
- 5.Borrow apr: Annnualised interest rates charged to the borrowers.
- 6.Permissible CDR: Determines the permitted loan amount a borrower can acquire against their collateral.
- 7.MCP: Minimum commitment period is the minimum time duration for which a user(liquidity provider or borrower) locks their deposits or loans within the protocol. MCP improves the protocol's ability to predict the liquidity inflow & outflow.
- 8.Primary markets: Supported markets where the system participants can deposit, borrow, or provide collateral.
- 9.Secondary markets: Supported markets on integrated dapps, where the borrowers can convert their loans (primary markets) into, through the process of swaps, trading, etc.
- 10.Collateral-check: An off-chain verification is performed to determine if the borrower has adequate collateral to maintain loan security.
Last modified 2mo ago