Markets & Tranches

Lotus markets consist of an set of tranches Tranches[] ordered by risk.

• Tranches are ordered by risk from most senior (index 0) to most junior.

• All the Tranches[] share a loanToken, irm, and liquidationModule.

• Each Tranche may have its own collateralToken, oracle, lltv.

MarketParams

Markets are uniquely identified by their parameters

struct MarketParams {
    address loanToken;          // ERC-20 token for lending and borrowing
    address irm;                // IRM determines tranche borrow rates based on utilization
    address liquidationModule;  // Liquidation Module prices and executes liquidations
    address[] collateralTokens; // Per-tranche collateral token 
    address[] oracles;          // Per-tranche price oracle for loan health checks
    uint128[] lltvs;            // Per-tranche Liquidation Loan-to-Value
}

These MarketParams are encoded to form a unique id.

Id marketId = Id.wrap(keccak256(abi.encode(marketParams)));

Tranche

Each tranche maintains its own state

struct Tranche {
    uint128 trancheSupplyAssets;   // Total lender assets in this tranche
    uint128 trancheSupplyShares;   // Total outstanding supply shares in this tranche
    uint128 trancheBorrowAssets;   // Total borrower debt in this tranche
    uint128 trancheBorrowShares;   // Total outstanding borrow shares in this tranche
    uint128 pendingInterest;       // Interest accrued from (senior) borrowers to be paid to (junior) lenders
    uint128 fee;                   // Protocol fee on interest (0-25%)
    uint128 lastUpdate;            // Last interest accrual for this tranche's borrowers
}