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Thatcher's Reservoir

Huckleberry's decentralized lendin' platform
Thatcher's Reservoir is a permissionless decentralized lendin' protocol built on Huckleberry. It offers drifters the ability to deposit or borrow against whitelisted assets. Combined with Huckleberry's decentralized exchange, it enables the deployment of a variety of high-level DeFi strategies -- includin' non-custodial leveraged tradin' -- on Moonriver. Thatcher's Reservoir is based on both the Compound and Banker Joe protocols.

How does it work?

Depositin'

Depositin' tokens is akin to turnin' yourself into a lender. When usin' Thatcher's Reservoir, you need to first deposit one of the whitelisted tokens. When you deposit tokens, you will receive a receipt in return. Meanwhile, your deposit continuously earns interest over time as your tokens are lent to borrowers!
For example, if you deposit $MOVR, you will receive a receipt (called trMOVR) in return. trMOVR serves as proof of your deposited $MOVR. When you want to withdraw your $MOVR, all you need to do is turn in your receipt (trMOVR). By doin' so, you will receive your original deposited $MOVR as well as any extra $MOVR you earned via accrued interest.

Borrowin'

Besides depositin' assets, you can also borrow against that asset if you've enabled its use as collateral.
For example, if you deposited $MOVR, you can then borrow other assets like $DOT against it. The amount of $DOT you can borrow is determined by $MOVR's collateral factor. Let's say that $MOVR has a collateral factor of 60%. This means that, if you supplied 1 $MOVR, you can borrow 0.6 $MOVR worth of $DOT.
Thatcher's Reservoir also has several safety measures in place to stop would-be nefarious actors from takin' actions that would cause them to exceed their borrowin' limit.

Repayin'

Repayment is a transfer of tokens from the borrower to the token market. Thatcher's Reservoir makes the process of repayin' the tokens you borrowed as simple as can be! If you only pay back a portion of your borrowed tokens, your borrowed balance will continue to accrue interest. In other words, as long as you are borrowin' tokens, your borrow balance is accruin' interest.

Rewards'

Since the launch of Thatcher's Reservoir Version 2 in May 2022, all borrowers AND lenders earn additional liquidity incentives and rewards!

Liquidation and other risks

A moment of sobriety, if you'll allow it. It is important to realize that lendin' protocols like Thatcher's Reservoir do carry some risk. For instance, borrowers risk liquidation when they are unable to keep a leveraged trade open. This, in turn, places lenders at risk of bein' unable to withdraw their deposit.
When a borrower's borrowin' balance exceeds their borrowin' limit (called a shortfall position), a portion of their collateral will be liquidated to return their account to good standin'. In other words, when your account is in a shortfall position, a liquidator can liquidate your collateral to return your position to a balanced position. This is standard operatin' procedure for decentralized lendin' platforms, but it's important for each and every drifter to be aware of how everythin' works.
Finally, while Thatcher's Reservoir is based on the Compound and Banker Joe protocols, both established lendin' protocols, Thatcher's Reservoir itself if not yet audited.

Why deposit tokens into Thatcher's Reservoir?

  • No impermanent loss.
  • Protect the assets you want to hold.
  • Earn interested on deposited tokens.
  • Build $TOM's value. Thatcher's Reservoir protocol fees are donated to Tom's House.

Why borrow tokens from Thatcher's Reservoir?

  • Execute expert DeFi strategies on Moonriver.
  • Access a variety of tokens without riskin' the tokens you want to hold.
  • Build $TOM's value. Thatcher's Reservoir protocol fees are donated to Tom's House.

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