Lending Pool Overview
To provide leverage to the system, the Lending Pool acts as the manager of both funds and loans. This contract will be interacted with by Xchange.
Lending Pool Funding
The Lending Pool is funded through two primary mechanism, by external deposits made by any wallet and through money owned by the system.
System owned money
To fund the Lending Pool, ETH from the X7 token ecosystem has been accumulating in the Ecosystem Splitter and will be the first liquidity deposited into the Lending Pool. This ETH will be locked forever and will grow over time. Users are also able to contribute to the Lending Pool via Deposits. The code owns this money and it will never leave the system.
External Deposits
Users will be able to deposit ETH and receive an X7 deposit token.
When X7Deposit is minted, it is a face value equivalent to ETH.
1 X7D = 1 ETH
When deposited, the ETH will enter the Lending Pool and be available for automated lending.
The Lending Pool will maintain a reserve of constellation tokens sufficient to back any externally funded Lending Pool liquidity.
X7D tokens can be wrapped in an NFT and staked. At maturity, this NFT will pay returns based on the rising constellation token floor.
