Lending
Last updated
Last updated
Infinity has three account types:
Current Account: All tokens transferred to/from the Infinity Protocol must go into/out of this account. This is used for security purposes and to enable broader flexibility within the investment and trading ecosystem.
Trading Accounts: This is where you lend or borrow. You may have multiple Trading Accounts to ring-fence tokens accordingly depending on your trading strategy.
Assets in the Trading Account, are considered 'Long' positions, and used as collateral against any borrowing (or short positions) that you may engage in within this account. Assets within this account include:
Basic tokens: USDC, USDT, DAI, ETH, WBTC
Deposit tokens: aETH (Aave), aETH (Compound)
Complex tokens: Curve LP Tokens, Uniswap V3 LP Tokens
Liabilities, for example, borrowing tokens, in the Trading Account are considered 'Short' positions, and may only be engaged in if there are sufficient Assets as measured by the Health Score [link]. You may borrow the following assets, among others:
Basic Tokens: USDC, USDT, DAI, ETH, and WBTC
There are three types of Trading Accounts, each with their own risk parameters (see Risk parameters (link) for more details):
General Account: This account enables you to have the widest choice of collateral types, and the broadest set of borrowing options. With this flexibility comes a more conservative LTV ratio, and Liquidation threshold
Stablecoin Accounts: This account restricts you to dealing only with Stablecoins, and Stablecoin-like products for a given base Currency. For example, you may deposit into the Stablecoin (USD) Account:
Basic Stablecoins: USDT, USDC, Dai
Deposit Stablecoins: aUSDT, cUSDT, aUSDC, cUSDC, aDAI, cDAI
Complex USD Tokens: Curve LP positions and Uniswap NFTs where the underlying are USD Stablecoins (e.g. 3pool on Curve), UniSwap LP Positions (e.g. USDCUSDT),
While the Stablecoin account is more limited, it comes with more aggressive LTV and Liquidation Thresholds enabling you leverage more and manage your risk more precisely.
Single Coin Accounts: This account is restricted to dealing with only tokens, and their related derivatives for a given currency. For example, you may deposit into the ETH Single Coin Account:
Basic Stablecoins: ETH
Deposit-like Stablecoins: aETH, cETH
Complex ETH Tokens: None, currently.
While the Single Coin account is highly restrictive, it also comes with a more aggressive LTV and Liquidation Threshold enabling you to leverage more and manage your risk more precisely.
Based on the tokens in each account, these account types or definitions will be automatically applied. That is, if you only have Stablecoins in an account, then it will be deemed a Stablecoin Account. If you then add ETH to it, it will then switch to a General Account with new risk parameters applied.
To deposit, navigate to the homepage, select the token you would like to deposit, click 'Lend', and transfer the preferred asset in the appropriate amount. This will enable a three-step process whereby:
your funds are transferred into the Current Account, and
immediately into the Trading Account, and
immediately into a Subscription Market, where they are immediately lent out and then represented as an iToken balance in your Trading Account
Note: This feature hasn't been enabled yet, you'll need to transfer from your Wallet to your Current Account, and then from your Current Account to your Trading Account respectively.
Remember that assets in your Current Account cannot be used as eligible collateral unless you transfer them into a Trading Account. To deposit your assets, go to the:
Landing Page, select your preferred token, and the appropriate amount and Transfer Deposit
Portfolio Page, select your preferred token from your wallet, Current Account, or Trading Account, and the appropriate amount, and select Deposit
To withdraw your Deposit or unwind your Lending position, go to your Dashboard >> Portfolio, and then select 'UNWIND' on the right side. You may alternatively enter in the opposite position on the Lending or Borrowing page that you currently have - that is, if you are currently Lending 100 USDC, you may simply Borrow 100 USDC.
When withdrawing you would need to ensure there is enough liquidity available in order to withdraw. If this is not the case, you would need to wait for more liquidity from new depositors or borrowers repaying their debt.
