Today, we are excited to announce the integration of Vires.finance into Muna. Vires.finance is a pool-based liquidity protocol facilitating lending and borrowing capabilities at rates defined by the market equilibrium.
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How Crypto Lending and Borrowing Works
Vires.finance utilises common pool-based mechanics where all the funds deposited participate in interest-bearing activities equally. The greater the demand for borrowing an asset is, the greater APY lenders get in return. The detailed algorithm is described in the protocol whitepaper.
Users can lend and borrow the following tokens: WAVES, USDN, USDT, USDC, EURN, ETH and BTC.
To borrow an asset, first, a user needs to supply assets as collateral for a loan. The debt can be repaid at any time, including the amount borrowed and the accrued interest. You can check the full documentation to learn more.
[VIDEO] How to borrow and lend assets on Muna
Learn more about supply and borrow with details here
The smart contract code is open-source and can be found on Github. Read about the code review and audit here
Understanding Supply and Borrow
Supply: This lets users deposit assets (as collateral for loans or deposit only) and withdraws deposited assets.
Borrow: This lets users (who deposited collateral) borrow assets and repay their loans.
Account health: A proportion between your Borrow Limit(Borrow Capacity) and your Borrow Capacity Used.
Wallet balance: Amount of an asset on your Muna account, available to spend.
Borrowed: The amount of an asset you borrow that attracts interest.
Supplied: Amount of an asset you deposit, this serves as collateral for you to borrow other assets and returns a profit.
Supply APY (Annual percentage yield): Real rate of return earned on your deposit, taking into account the effect of compounding interest.
Borrow APR (Annual percentage rate ): Yearly interest generated by a sum that’s charged to your borrows and paid to lenders.
In short: APY, or annual percentage yield, takes into account compound interest, but APR, which stands for annual percentage rate, does not.
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