Location: Intrinsic Field Center

Author: Dr Jonathan Osterman

What is Manhattan?

Manhattan enables fixed rate lending for any asset.

How are tokens made available?

Tokens are made available through isolated lending markets. These markets are created in partnership with protocols who manage tokens - as a result, every loan has 1 lender and 1 borrower. Lender protocols can deposit and withdraw their tokens at will, provided the tokens are currently not being lent out.

Each lending market may have more than one version, with varying risk parameters and debt ceilings.

Are there fees?

A fixed interest rate is charged on loans. Interest rate is charged by increasing the debt owed. Borrowing and repayment fees are deducted at the collateral level. Origination and repayment are earned by the front end.

What is a front end?

A front end hosts the website for markets and collect borrow and repayment fees (to applicable markets). A front end can choose to reduce the rate to attract more users.

What about the interest rate?

Interest is shared between Manhattan and the token protocol. The split and rate is dependent on the protocol and can vary per vault. Interest is collected separately from tokens lent out, so lender protocols can continually withdraw interest earned despite utilization rates on the market.

How do liquidations work?

When a debt position exceeds maximum loan to value thresholds, the position is liquidated. In this process, part of the debt is repaid and liquidators are compensated with an equivalent amount of collateral tokens, plus a bonus. Liquidations are permissionless and competitive. This means anyone with enough tokens can liquidate a position on a first-come-first-served basis.

Are my funds safe?

We forked the codebase from mai.finance and added interest-rate into the system. We did this given that the codebase for MAI has been battle tested. We’ve covered the code in tests as well so we’re certain of the cases we’ve thought of. Of course, adding new collaterals could introduce cases we haven’t thought of. This is why we will maintain the vault creation controlled through a multisig.

How can I add my token to the protocol?

Please make sure you have an oracle and sufficient liquidity in the chain you’re interested in creating this. Please reach out to me at t.me/dr_manhattan or twitter.com/manhattan_fi