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Expand Up @@ -14,4 +14,4 @@ The adoption of blockchain technology by Enterprises in the near term will be ea

Even across similar use cases of Decentralized finance and NFTs, any single blockchain infrastructure is not scalable enough to target mass adoption.

The blockchain ecosystem will scale similarly to how the internet scaled horizontally through the TCP/IP protocols and enabled disparate enterprise network communications to be interconnected and reach broader audiences.
The blockchain ecosystem will scale similarly to how the internet scaled horizontally through the TCP/IP protocols and enable disparate enterprise network communications to be interconnected and reach broader audiences.
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Expand Up @@ -12,7 +12,7 @@ For example USDC, USDT, DAI, and suUSD are homogeneous assets and belong to the

#### <mark style="background-color:blue;">Heterogeneous Asset Group</mark>

This asset group consists of tokens with varying value, liquidity, and risk factor.&#x20;
This asset group consists of tokens with varying values, liquidity, and risk factor.&#x20;

For example Stablecoins USDC, USDT, DAI have heterogeneous properties when compared to ETH or WBTC

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Expand Up @@ -26,7 +26,7 @@ The maximum value of asset that can be borrowed when collateral and borrowing as

The borrow limit is yielded as the sum of locked collateral value, times the maximum LTV ratio of collateral

Borrows can be made until the user's liability reaches their position's borrow limit. . One should observe that the borrow limit fluctuates with the oracle-reported deposit asset price.&#x20;
Borrows can be made until the user's liability reaches their position's borrow limit. . One should observe that the borrowing limit fluctuates with the oracle-reported deposit asset price.&#x20;

### <mark style="background-color:blue;">Borrow Interest</mark>&#x20;

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Expand Up @@ -16,7 +16,7 @@ In return for the supplied assets, liquidity providers will receive correspondin

### <mark style="background-color:blue;">Deposit Interest</mark>

The value of sdrToken will continuously increase reflecting the deposit interest rates, which is set as a function of the supply & demand of the assets.&#x20;
The value of sdrToken will continuously increase reflecting the deposit interest rates, which are set as a function of the supply & demand of the assets.&#x20;

### <mark style="background-color:blue;">Enable Asset as Collateral</mark>

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@@ -1,5 +1,5 @@
# ​Interest Rate Model

​Sumer Protocol has adapted a variable interest rate model, popular with other DeFi Money Market protocols in the market (such as Compound and Aave), where the rates are largely determined by the supply and demand of assets, represented by its Utilization rate.&#x20;
​Sumer Protocol has adopted a variable interest rate model, popular with other DeFi Money Market protocols in the market (such as Compound and Aave), where the rates are largely determined by the supply and demand of assets, represented by its Utilization rate.&#x20;

Furthermore, the computation of interest rates is separated into two stages, the Standard model and the Jump (Kink) model, to further incentivize/disincentivize depositing and borrowing activity.