Loan Slot

A Loan Slot is an individual borrowing position created against a Loan Position. When a user borrows, they are essentially creating a Loan Slot that represents their leveraged portion of the underlying LP asset. The protocol tracks the debt associated with each Loan Slot using a dynamic interest accrual system. This allows for compound interest to be calculated efficiently without requiring constant on-chain transactions, saving gas and improving scalability.

To acquire a Loan Slot, borrower must pay a small deposit called the Pool Reserve that is calculated to be slightly larger than the expected interest amount.