Umee
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Roles in Umee

Lenders

Users who deposit their assets into the Cross Chain Capital Facility for borrowers to borrow.
Lenders receive the uTokens or meTokens that represent their collateral positions. Lenders will receive interest based on the asset they lend.
uTokens = the assets lent + interest from lending their asset
meTokens = the assets staked + staking yield
Currently, users who deposit assets into the Cross Chain Capital Facility will receive an ERC 20 compliant uToken.The ERC 20 compliant uToken can then be transferred between both Cosmos and Ethereum’s blockchain via the two-way peg.

Borrowers

After lenders receive their uTokens or meTokens, they can use them to borrow.
In order to borrow, sufficient collateral must be deposited to ensure the necessary levels of over-collateralization. uTokens & meTokens will be the collateral used to establish borrowing as they are direct indicators of collateral that is deposited into the Asset Facilities.
Users will be able to use their uTokens and meTokens as collateral for borrowing assets from the Cross Chain Capital Facility.
Users can use the collateral tokens for borrowing any asset deposited on the Cross Chain Capital Facility that has sufficient reserves. This includes both Cosmos as well as Ethereum assets.

Collateral Managers

The Collateral manager protocol keeps track of the collateral affiliated with borrower positions. This protocol is in place to ensure that the loan to value ratios are sufficient to ensure over-collateralization of the Capital Facility network. Borrow Positions will have diversified collateral.
    Borrow Position Collateral Management - in this system collateral management will be determined by the underlying health factors of the pools that users borrow from. Higher levels of over-collateralization will be necessary because some assets are more volatile or have lower market caps than others.
    Liquidation Managers initiate the process of moving the assets into an auction market where keepers can choose to auction for under-collateralized Borrow Positions.
    Borrow Position Liquidation - If the loan to value ratios fall below the necessary threshold of over-collateralization, liquidation managers will be notified from the Collateral Managers to begin the process of selling assets on the open market. Assets will sell at a heavy discount to incentivize immediate purchase. Borrowers can prevent this process by adding additional collateral tokens in order to ensure healthy over-collateralization.
Last modified 2mo ago