💱ShadeX - Money Market

Fully Encrypted Money Market On Chain

ShadeX is an encrypted borrowing and lending protocol that ensures all contract interactions, including borrowing, lending, collateral management, and yield generation, are private by default. The platform enables cross-margin borrowing positions with robust features for lenders and borrowers, providing flexibility and security for users and the protocol.

Key Features

Lenders

• Supply and Withdraw: Lenders can supply assets into a vault and withdraw their supply when needed. Upon supplying, lenders receive yield-bearing “x” tokens (lent tokens). Lenders earn interest from the utilization of their lent assets by borrowers.

  • Tokens available to Lend are required to be whitelisted. All Lent tokens accept all whitelisted collateral for borrowing.

  • When users lend tokens, they have the option to receive “x” tokens or to “Donate” the funds being lent to the lending pool (only used to compensate for bad debt)

• Native Use Cases of x-Tokens:

  • Optional Staking: “x” tokens can be deposited into a staking contract to earn additional rewards (supply-side rewards). These rewards can be claimed in a traditional fashion similar to LP rewards or staking rewards on the Shade app.

  • Provide Liquidity: “x” tokens can be provided along with their corresponding base asset (the asset being lent out) to earn swap fees and potential LP rewards.

Borrowers

• Provide Collateral and Borrow:

• • Users can provide whitelisted collateral to borrow any lent asset in a particular market up to the Max LTV of the respective collateral provided. For multiple collateral assets backing a debt position, the Max LTV will be the average Max LTV of the collateral assets. The liquidations

  • Users have the opportunity to earn borrowing rewards on their loan’s principal (when configured). These borrowing rewards effectively act as a subsidy to borrowers for the interest paid to lenders and help stimulate borrowing activity.

  • Each whitelisted collateral has a configured Max LTV and Liquidation LTV. The Max LTV represents the maximum value that can be borrowed relative to the value of an individual or group of collateral. The Liquidation LTV represents the maximum value a loan can be at relative to its collateral value before it is subject to liquidations, where Liquidation LTV > Max LTV.

• Collateral Swaps:

  • ShadeX offers a unique functionality called “Collateral Swap”, which allows for borrowers to swap the collateral they have backing their loans using pre-configured routes using ShadeSwap

  • Before a collateral swap can happen, the health of the users position is checked. A position is considered healthy if the position is not above Max LTV or flagged for liquidation (above Liquidation LTV). The user can swap collateral so long as the post swap LTV of the position is not above Liquidation LTV for a particular collateral. A position is considered unhealthy if it is at or above the Max LTV for its collateral backing. For unhealthy positions, users can only perform collateral swaps that increase the help of their position.

  • Slippage constraints are user-restricted.

• LP Tokens as Collateral:

  • ShadeX allows for the use of LP tokens as collateral and borrowable/lendable tokens. [feature complete but not live with current version, will be launched with new pools later]

  • For LP tokens provided as collateral, users have the ability to “stake” their LP tokens provided as collateral to earn LP rewards (effectively increasing the yield generated by the LP token). If users stake their LP tokens while providing as collateral, any changes to collateral (including depositing/withdrawing collateral) trigger claiming of LP rewards in a master contract that manages LP rewards on behalf of all borrowers providing LP tokens and staking them.[feature complete but not in scope for mainnet launch]

Flash Loans

• ShadeX allows users to perform flash loans, which allows for borrowing from any market without collateral, provided the entire debt and configured interest are repaid in the same transaction.