Introduction

Welcome to Swaylend Docs!

Swaylend is a decentralized lending platform built on the Fuel Network, which operates using an Ethereum consensus layer. As a fork of Compound V3, Swaylend retains some of its core logic, though it has been rewritten in the Sway language. The platform is structured around base asset markets, allowing users to supply base asset and earn interest or borrow base asset and pay interest on a single asset. For example, in the USDC market, USDC functions as the base asset that users can either borrow or supply.

In each market, users can only maintain one active position, either as a lender or a borrower. This means users cannot simultaneously borrow and supply the same asset, such as USDC, within the USDC market. However, users can hold multiple positions across different markets. For example, they could borrow USDC in the USDC market while supplying ETH in the ETH market simultaneously.

If users choose to open a borrow position and borrow a base asset, they must first provide collateral. As Swaylend is an overcollateralized lending protocol, users must closely monitor key metrics such as the Liquidation Ratio when managing a position. The collateral provided will be absorbed by the protocol if the user's position becomes subject to liquidation. It is important to note that no interest is earned on the supplied collateral. Alternatively, users can choose to open a supply position and provide the base asset. In this position, users can earn interest, as reflected by the APY displayed in the app. Users can withdraw their supplied assets at any time since Swaylend maintains no control over these assets, regardless of whether they are deposited as collateral for a borrowing position or as part of a lending position.

This documentation is intended for anyone seeking to understand how Swaylend works and how to use it. Readers will find helpful information to guide them through onboarding to the protocol, with more technical details presented towards the end. Please note that all information provided in this documentation is subject to change without prior notice.

For any questions or further clarification, we encourage you to join our Discord community to learn more about us.