Glossary

Delegated Lender Vault (Vault)

DLV is a smart contract for Lenders to interact with MethLab. It stores assets and delegates lending terms to be fetched from the Strategy contract. Anyone who wants to be a Lender can create a Vault.

Borrow Price

Amount of supply asset(in native terms) the Lender supplies plus the interest receivable per unit of collateral token. The Borrower must repay the loan according to the reserve price.

Leverage

It refers to the use of looping (to borrow more funds) to amplify the returns of an investment. A 2x leverage means that every 1$ worth in position will give return that is equal to holding $2 worth in position.

Collateral

are the assets stored in the Loan contract as security. Collateral is used to manage the risk of Borrower not repaying the loan.

Liquidation-free

MethLab is liquidation-free. If the Borrower does not repay, the collateral is transferred to the Lender. This makes MethLab completely liquidation-free.

Fixed-term

It refers to fixed duration loan positions. This is in contrast to pool-based lending protocols where the position may be perpetually opened at the cost of variable or semi-stable interest rates. All positions on MethLab are fixed-term once created.

Fixed-rate

All positions on MethLab are fixed-rate i.e the interest rate is fixed. Borrowers pay a fixed amount as interest as calculated at position initiation.

Loan-Expiry

The timestamp(date) before which the Borrower must repay the loan in order to reclaim the collateral. If the Borrower is unable to do so, the Lender can claim Borrower's collateral.

Loan

It is the contract between the Lender and the Borrower that consist of the terms upon which both the participants agreed to lend/borrow.

LTV

Loan to value (LTV) is the ratio of borrow asset worth to collateral asset worth. It is expressed as a percentage for eg @ 80% LTV i.e means 80% worth of collateral can be borrowed.

MethLab does not internally track LTV (due to oracle-minimized architecture) but it may be used at position creation by the Strategy contract.

Strategy

Strategy abstract out the lending logic for the Vault. It is used to calculate the Borrow Price, Duration and Interest Rate.

Repayment Amount

Total amount to be repaid by the Borrower including the interest and any protocol fees.

Borrow Amount

Amount of borrow asset received by the Borrower from a position.