📎Origination

Once you have gone through the discovery process for either lending or borrowing, and have decided where to deploy your assets, you can perform the following steps to originate positions:

Lender

  • In continuation to the lending discovery process, for demonstration, let’s choose the first market, i.e., “Compound-v2”. Once selected, then click on “Supply” to proceed.

  • In the supply modal's “Amount(Total)” box, enter the amount of the asset to be supplied.

  • In the “Distribution” section, you can distribute the asset in your chosen money markets. This is relevant when you choose >1 markets. Then click “Supply”.

  • You will see all the transactions that will be executed for the supply. The transactions grouped together will be batched into a single transaction - thanks to the Safe you had created.

  • Click on “Approve”.

  • In this case, you will first trigger the approval transaction. This transaction approves the asset to be transferred from your EOA wallet into your Lucidity Safe wallet.

  • Next, click “Execute” to supply the asset into the selected market(s) and sign the transaction”.

  • Once done, hit "Close” and navigate to the Dashboard. All your open positions can be seen and managed from the dashboard. To see how to manage these positions, check out the Management guide.

For a better understanding, you can take a look at our walkthrough video that takes you through the complete discovery as well as the origination process for a lender on the platform:

https://drive.google.com/file/d/1M9EW4G27pAY3hPi28ViWzwzP1b4KmRrp/view?usp=sharing

Borrower

As a borrower, you have two ways to open a debt position:

  • Use Existing Supplies

  • Create new positions

Use Existing Supplies

  • Under this section, you will be asked to choose the protocol from which we want to borrow the asset.

  • Here you will only see existing positions in the Lucidity Safe wallet. If you have a supply position open through your EOA wallet, you would first have to import that position into Lucidity to see that here.

  • Considering you have a position already (see the below example)

  • Select the protocol to see details of the open position like “Collateral Supplied”, “Health Factor”, “Borrow Asset”, and “Borrow Amount”.

  • Choose which asset you wish to borrow from the “Borrow Asset” dropdown.

  • Enter “Borrow Amount”. Note that the health factor of the resultant position should always be >1. We recommend maintaining an HF of at least 1.5.

  • Click “Borrow”.

  • In the borrow modal, you will see a list of transactions that will be batched. Click "Execute" and sign the transaction.

  • You can go to your “Dashboard” to see and manage all your open positions.

Create new positions

  • Once you've gone through the discovery process, click "Borrow". In the borrow modal, enter the preferred Health Factor, and a distribution of your debt

    • Health factor is a ratio that indicates the safety of your position. It should always be above 1, to avoid the position from being liquidated.

    • The health factor box is populated with 1.5 as a default - you can change it based on your appetite.

    • The target health factor is asked here to calculate the collateral required for each position (seen at the bottom).

    • Click Borrow to see the list of transactions that will be done to open these positions. Thanks to the Safe smart account you created, all these transactions will be batched.

    • Click "Execute" and sign the transaction. All selected positions will be opened up parallelly, which you can manage from the Dashboard.

For a better understanding, you can take a look at our walkthrough video that takes you through the complete discovery as well as the origination process for a borrower on the platform:

https://drive.google.com/file/d/1qGHbKMHv9yGuUdtfPr0179ea2_X32Skq/view?usp=sharing

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