LRT(Liquid Restaked Tokens)
Overview
LRT (Liquid Restaked Tokens) refers to a mechanism that maintains liquidity during the staking process. Satori has partnered with Renzo Protocol to support the deposit of Renzo Protocol's ezETH into the Satori platform. Users can earn LSD staking rewards provided by Renzo Protocol on the Satori platform, while locking ezETH as collateral to borrow USD assets. The borrowed USD will be automatically deposited into the user's account and can be used as margin for perpetual contract trading.
Deposit
Currently, Satori only supports ezETH on the Linea network for borrowing USD to use in perpetual trading.
Visit Linea Perp Exchange: https://linea.satori.finance/trade
The process for depositing ezETH is the same as depositing USDC or USDT.
Deposit through Satori’s UI, and after a successful deposit, you can check your token balance in the menu bar.
Withdrawals
The available balance of LSD assets can be withdrawn at any time without a cooldown period, but there is a daily maximum withdrawal limit.
LSD assets frozen as collateral cannot be withdrawn.
Borrow & Repay
Borrow：
Collateralize ezETH to borrow USD. After entering the amount of collateral, you can borrow USD up to the maximum amount or customize the borrowing amount to reduce liquidation risk.
Each loan corresponds to a separate loan order, and the borrowing ratios and liquidation prices may differ across orders. Ongoing orders can only be repaid. You cannot add margin midway, so be careful of the order's risk.
Borrowing Fee = Staked Amount * Annual Fee rate * Borrowed Times.
Annual Fee rate is 2%. Future adjustments may be made based on protocol governance.
| Name | Value |
|---|---|
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% |
Repay：
For manual repayment, users must repay the full outstanding amount per order; partial repayments are not allowed.
Repayment will deduct the available USD from the perpetual account and release the ezETH collateralized at the time of borrowing.
Completed repayment orders can be viewed in the order history.
Liquidation
Liquidation Conditions：
If market fluctuations cause the collateral's oracle price to drop and reach the liquidation price, the collateral will be liquidated.
The mark price refers to the price of the underlying asset in the spot market. It is a composite price calculated based on price data from multiple platforms and is calculated every second. Satori aggregates data from the following platforms: CoinMarketCap and CoinGecko.
Liquidation Process：
When an order's liquidation price is reached, the liquidation system will batch process the collateral liquidation. The purpose of batch liquidation is to minimize the liquidation of user collateral during price fluctuations to protect user assets. After calculating the amount of collateral to be liquidated using the batch calculation formula, the platform will sell the necessary collateral through an external swap to repay the user's debt. In most cases, this will lower the order's liquidation price. As liquidation is carried out at market prices via swaps, it may result in 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 is insufficient to repay the debt, the platform will first deduct from the available balance of the perpetual contract account. If the balance is insufficient, the user will need 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 at once 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 the above mechanisms, Satori ensures that users can flexibly use and manage their LSD assets while protecting their assets during market fluctuations.
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