🚀Liquid Restaked Tokens (LRT)
Overview
LRT (Liquid Restaked Tokens) is a mechanism designed to sustain liquidity during the staking process. Satori has partnered with Renzo Protocol to facilitate the deposit of Renzo Protocol's ezETH into the Satori platform. Users can earn LSD staking rewards provided by Renzo Protocol on Satori while locking ezETH as collateral to borrow USD assets. The borrowed USD will be automatically credited to the user's account and can be utilized as margin for perpetual contract trading.
Deposit
Currently, Satori supports ezETH, LBTC, PumpBTC, stBTC, pufETH, stBTC, ezzETH.
Let’s take ezETH as an example:
Access the Linea Perp Exchange: Linea Perp Exchange
The process for depositing ezETH is identical to that of depositing USDC or USDT.
Users can deposit through Satori’s user interface, and upon a successful deposit, token balances can be verified in the menu bar.
Withdrawals
The available balance of LSD assets may be withdrawn at any time without a cooldown period; however, there is a daily maximum withdrawal limit.
LSD assets that are frozen as collateral cannot be withdrawn.
Borrow & Repay
Borrowing：
Users can collateralize ezETH to borrow USD. After specifying the amount of collateral, users have the option to borrow USD up to the maximum limit or customize the borrowing amount to mitigate liquidation risk.
Each loan corresponds to a distinct loan order, with varying borrowing ratios and liquidation prices. Ongoing loans can only be repaid, and users cannot add margin during the borrowing period, necessitating careful consideration of associated risks.
Borrowing Fee：
Borrowing Fee=Staked Amount×Annual Fee Rate×Borrowed Times
Borrowing Fee=Staked Amount×Annual Fee Rate×Borrowed Times
Annual Fee Rate: 2% (subject to future adjustments by protocol governance).
Minimum Borrowing Amount for a single borrowing
Max($10,Stake Amount*Price*20%)
Maximum Borrowing Amount for a single borrowing
Min($10000,Stake Amount*Price*70%）
Maximum Borrowing Ratio
70%
Repayment：
For manual repayment, users must repay the full outstanding amount for each loan order; partial repayments are not permitted.
Repayments will deduct the available USD from the perpetual account and release the ezETH collateralized at the time of borrowing. Completed repayment orders can be reviewed in the order history.
Liquidation
Liquidation Conditions：
If market fluctuations lead to a decline in the collateral's oracle price, reaching the liquidation price, the collateral will be subject to liquidation.
The mark price refers to the price of the underlying asset in the spot market, calculated based on price data from multiple platforms and updated every second. Satori aggregates data from platforms such as CoinMarketCap and CoinGecko.
Liquidation Process：
When an order's liquidation price is reached, the liquidation system will process the collateral liquidation in batches. This approach aims to minimize the liquidation of user collateral during price fluctuations to safeguard user assets.
After calculating the collateral to be liquidated using a batch calculation formula, the platform will sell the necessary collateral through an external swap to repay the user's debt. In most instances, this process will lower the order's liquidation price.
However, as liquidations are executed at market prices via swaps, this may lead to consecutive liquidations due to insufficient liquidity or severe price fluctuations.
Post-Liquidation Handling：
If there is remaining collateral value after liquidation, it will be returned to the user.
If the liquidation does not suffice to cover the debt, the platform will first deduct from the available balance of the perpetual contract account. Should the balance be insufficient, the user will be required to repay the shortfall.
Liquidation Price Calculation Formula：
Liquidation Price= Borrowed Amount /[Remaining Collateral Quantity×(1−Maintenance Margin Rate) ]
ezETH Maintenance Margin Rate: 20%
Batch Liquidation Quantity Formula：
The system will not liquidate all collateral simultaneously but will gradually liquidate based on a predetermined batch liquidation quantity formula.
Single Batch Liquidation Quantity=min[max(20% Token Quantity,0.02),Staked Amount)]
Through these mechanisms, Satori ensures that users can flexibly utilize and manage their LSD assets while protecting their investments during market fluctuations.
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