Debt Adaptors

Sommelier Cellars can incur leverage by borrowing assets from any lending protocol supported by an adaptor - to do this, a debt adaptor can be built. Debt adaptors are subject to the following guidelines:

  • isDebt must return true.

  • User deposits and withdrawals from the debt position should not be supported.

  • balanceOf should report the total liability outstanding.

  • Any function which incurs additional debt should only borrow up to liquidation thresholds and not cause a strategist to be able to liquidate their own Cellar.

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