Orbit Lend

Lending on Orbit involves providing assets to borrowers in return for earning interest on the lent amount. When you lend, you earn lending yield, which is the return you receive from borrow interest in addition to yield subsidies from Orbit tokens (which derive value from Blast's native yield).

Pooled Lending

Upon lending, the Orbit money market aggregates provided assets with matching denominations into a single asset pool, termed markets. Borrows are conducted from this pool, and any borrow interest generated from their lending is equally shared amongst all units of provided Blast assets.

This pooling of assets make efficient use of liquidity possible. Lent assets past their predetermined lending duration can be withdrawn anytime, unless every asset in the pool is borrowed out.

Orbit Assets

Orbit's money market simplifies the process for users to deposit assets and take out loans. When users deposit assets, they receive oAssets, which represent their share in the loan pool and increase in value over time due to interest. Once the lender's preset lending duration has expired, oAssets can be exchanged back for their original deposit as users repay their loans.

The exchange rate between the oAssets and their underlying Blast assets are defined as:

$$exchangeRate=\frac{assetsLendable + assetsLent}{supply}$$

Where $assetsLendable$ refers to the amount of lendable Blast assets remaining in the Orbit money market, $assetsLent$ being the interest-accrued amount of assets that have been lent out to borrowers, and $supply$ being the minted supply of an oAsset.

To borrow, users must activate the collateral button on the Orbit web app, using their assets as collateral.

Tickers of oAssets follow the tickers of lent assets, with an added prefix "o":

Lent Asset	oAsset
ETH	oETH
USDB	oUSDB
BTC	oBTC

Lending Yield

Lent assets constantly accumulate yield from two sources:

• oAsset appreciations funded from borrower interest payments

• Yield subsidies from Orbit token distributions (whose value comes from Blast's native yield)

The yield rates shown on the Orbit web app accounts for compounding and are shown as an annual percentage yield (APY), displayed next to each asset.

Yield from Borrower Interest

Lending yield from borrower interest is dictated based on the amount of assets borrowed compared to the total amount of assets supplied by lenders, also known as the utilization rate:

$$utilizationRate=\frac{amountBorrowed}{amountSupplied}$$

Where $amountBorrowed$ is the amount of assets borrowed out to borrowers and $amountSupplied$ is the total amount of assets (including the amount borrowed out) supplied over from lenders.

The utilization rate is calculated per asset and increases as borrow demand for the asset increases.

Lending yield from borrower interest is calculated as a function of an asset's borrow interest and its utilization rate:

$${lendingYield}_{fromBorrows}=utilizationRate\cdot borrowInterest$$

Yield from Subsidies

Lenders receive additional yield from ORBIT incentive distributions, whose value comes from Blast's native yield. Further details can be found here.