Somnia Lend

Somnia Lend

Somnia Lend is Somnia's credit market. Users supply assets to earn yield and borrow against collateral, in pooled markets built on the Aave v3 design and integrated with trading venues on Somnia Markets.

The credit layer for Somnia's markets.

Why Somnia Lend

Put idle balances to work

Supply assets between trades and earn yield without leaving the ecosystem where you trade.

Borrow against what you hold

Draw liquidity against collateral instead of selling a position.

Use a proven lending design

Pooled markets with variable rates and liquidation thresholds follow the widely deployed Aave v3 model.

How Somnia Lend works

  1. Supply. Deposit assets into a pooled market and receive a position that accrues interest.
  2. Collateralise. Enable supplied assets as collateral.
  3. Borrow. Draw assets up to the market's loan-to-value limit at a variable rate.
  4. Manage. Repay or add collateral. Positions past their liquidation threshold are liquidated onchain.

Capabilities

  • Pooled markets. Shared liquidity pools per asset, with rates set by utilisation.
  • Variable rates. Interest rates adjust with supply and demand.
  • Onchain liquidations. Positions past their threshold are liquidated transparently.
  • Aave v3 design. A widely deployed and studied lending architecture.
  • Price-feed backed. Collateral is valued using onchain price feeds.
  • Embeds in trading venues. Lending can sit inside a venue's own app, next to the order book.

Further reading

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