# Introduction

## Welcome to Mare Finance

Mare Finance is an EVM compatible lending/borrowing protocol that launched on Kava EVM. Mare Finance provides peer-to-peer lending solutions that are fully decentralized, transparent and non-custodial. 

<figure><img src="https://3894095702-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0MiDFptmLNYFC2Bpob2N%2Fuploads%2FFzBpfWd1uCzZXe0v21iR%2FMare%20Finance%20v8-%20Final-14.png?alt=media&amp;token=6d76434d-c3df-49a8-a214-29696e7e6b3a" alt=""><figcaption></figcaption></figure>

Similar to (and based from) existing lending platforms like [Compound Finance](https://compound.finance/) and [AAVE](https://aave.com/) users will be able to lend any supported assets on our platform, and use their capital to borrow supported assets.&#x20;

Mare aims to be the prime lending platform on Kava EVM by offering highest competitive incentives for money markets, having the deepest liquidity.

### Links

Mare Finance : <https://mare.finance>

Twitter : <https://twitter.com/MareFinance>


# Wallet

To use Mare Finance, you need a MetaMask or web3 wallet connected to the Kava EVM. For more information, visit their [website](https://docs.kava.io/docs/ethereum/metamask/).

Metamask by default only supports the Ethereum network. However when you connect MetaMask to Mare , Mare will automatically configure MetaMask to work with Kava EVM.

To perform transactions on Mare or any other Kava EVM protocols, you will need KAVA for gas.


# FAQ & Troubleshoot

### Troubleshooting in general

* Try hard refreshing by pressing CTRL+F5 and clearing cache
* Switch from mobile to desktop
* Switch browser
* Make sure you're connected to Kava EVM on your wallet. For bridging, make sure you're connected to the chain/network you want to bridge from.

Come to our Discord Community for more help!


# Contract Addresses

{% tabs %}
{% tab title="Protocol (V2)" %}

<table><thead><tr><th>Contract</th><th width="386.66666666666663">Address</th></tr></thead><tbody><tr><td>Unitroller</td><td>0xFcD7D41D5cfF03C7f6D573c9732B0506C72f5C72</td></tr><tr><td>Comptroller Implementation</td><td>0x3E23A6E6133D7f3fF55a1C087AF4817C6c89aA88</td></tr><tr><td>maWKAVA</td><td>0x350c4A0aC240755Bb6432FeB907eCAFbbBc75770</td></tr><tr><td>maUSDT</td><td>0x2f9e61D4E9A9A3694CcDc287c790EA5cc3302E88</td></tr><tr><td>maATOM</td><td>0x8E00102d96b34BEF29F3E1e0e5DBd0a611Cac312</td></tr></tbody></table>
{% endtab %}

{% tab title="Protocol (V1)" %}

<table><thead><tr><th>Contract</th><th width="386.66666666666663">Address</th></tr></thead><tbody><tr><td>Unitroller</td><td>0x4804357AcE69330524ceb18F2A647c3c162E1F95</td></tr><tr><td>Comptroller Implementation</td><td>0x2Dfe36db05c14647A2a0eBCd02fAc3F3258E4DdF</td></tr><tr><td>maUSDC</td><td>0x066C98E48238e8D77006a5fA14EC3B080Fd2848d</td></tr><tr><td>maUSDT</td><td>0x92e17FD2DA50775FBD423702E4717cCD7FB2A6BB</td></tr><tr><td>maDAI</td><td>0x58333b7D0644b52E0e56cC3803CA94aF9e0B52C3</td></tr><tr><td>maWKAVA</td><td>0x24149e2D0D3F79EBb7Fc464b09e3628dE395b39D</td></tr><tr><td>maETH</td><td>0x0B6c2a9d4d739778dF6cD1cf815754BD1438063c</td></tr></tbody></table>

{% endtab %}

{% tab title="Token" %}

<table><thead><tr><th width="231">Contract</th><th>Address</th></tr></thead><tbody><tr><td>MARE</td><td>0xd86C8d4279CCaFbec840c782BcC50D201f277419</td></tr><tr><td>Liquidity Generation</td><td>0xDc3f83F046f767dd6617F93f9683882B65E02678</td></tr><tr><td>LGE Distributor</td><td>0x17063Ad4e83B0aBA4ca0F3fC3a9794E807A00ED7</td></tr><tr><td>LGE Bonus Distributor</td><td>0xF0Eb780e47f08C31A5708eB7D9D5636A54fb5844</td></tr></tbody></table>
{% endtab %}
{% endtabs %}


# Liquidation

Liquidation is determined by borrow collateral factors (used to determine initial borrowing capacity).

When an account’s borrow balance exceeds the limits set by collateral factors, it is eligible for liquidation. A liquidator (a bot, contract, or user) can call the absorb function, which relinquishes ownership of the accounts collateral, and returns the value of the collateral, minus a penalty (liquidation factor), to the user in the base asset. The liquidated user has no remaining debt, and typically, will have an excess (interest earning) balance of the base asset.

Each absorption is paid for by the protocol’s reserves of the base asset. In return, the protocol receives the collateral assets. If the remaining reserves are less than the target, liquidators are able to buy the collateral at a discount using the base asset, which increases the protocol’s base asset reserves.


# Collateral and Reserves

## Collateral and Reserves

{% tabs %}
{% tab title="Reserve Factor" %}
Reserves are an accounting entry in each maToken contract that represents a portion of historical interest which can be withdrawn or transferred through the protocol's governance. A small portion of borrower interest accrues into the protocol, determined by the reserve factor.\
\
The reserve factor is the percentage of interest paid to the Mare Finance. If the reserve factor is 10, then that would imply a 10% rate of interest paid on the borrowed asset allocated to Mare.
{% endtab %}

{% tab title="Collateral Factor" %}
maTokens have a collateral factor that can range from between 0-90%, and represents the proportionate increase in liquidity (borrow limit) that an account receives by minting the maToken.

Large or liquid assets tend to have high collateral factors; whereas smaller or more illiquid assets will tend to have lower collateral factors. If an asset has a 0% collateral factor, it cannot be used as collateral (or seized in a forced liquidation event). However, the asset can still be borrowed.

In summary, the Collateral Factor is the maximum you can borrow against a particular asset.<br>

**Example**: if the collateral factor for USDC is 75%, the maximum amount of USDC you would be able to borrow in other assets (assuming a deposit of 1000 USDC) would be $750.
{% endtab %}
{% endtabs %}

| TOKEN | COLLATERAL FACTOR | RESERVE FACTOR |
| ----- | ----------------- | -------------- |
| KAVA  | 50%               | 20%            |
| USDT  | 85%               | 13%            |

Collateral factors, and/or reserve factors, may be adjusted from time to time, depending on factors such as the liquidity for a particular asset.


# Interest Rate Model

## Interest Rate Model

### Borrow APR**​** <a href="#borrow-apr" id="borrow-apr"></a>

[`= Base + Multiplier * min(UtilizationRate, Kink) + max(JumpMultiplier * UtilizationRate - Kink, 0)`](#user-content-fn-1)[^1]

### Supply APR <a href="#supply-apr" id="supply-apr"></a>

`= Distribute (Interest Paid by Borrowers Per Block - Reserve) to all suppliers, and convert it into APY`

`= Distribute [(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) to all suppliers, and convert it into APY`

`= {[(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) / Total Supply}, and convert it into APY`

`= {1 + [(1 + Borrow APY) ^ (1/BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) / Total Supply} ^ BlocksPerYear - 1`

[^1]:


# Liquidity Generation Event(LGE)

The MARE token launch will be one of the fairest of DeFi, and it will be based on SONNE token liquidity generation event.&#x20;

<figure><img src="https://3894095702-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0MiDFptmLNYFC2Bpob2N%2Fuploads%2FpKms56MHRneiXdFY45fg%2Fimage.png?alt=media&amp;token=63dda15d-b76f-4c74-bbcb-69c84be1b290" alt=""><figcaption></figcaption></figure>

Users who deposit USDC into the LGE contract at any time during the LGE will be apportioned a proportional share of the LGE regular allocation. (3,2% of the total supply of MARE )

As an additional incentive, users who deposit during the ***first day*** will be apportioned a proportional share of the LGE bonus allocation. (0,3% of the total supply of MARE)

Claimable MARE will be based on share of the total deposits at the end of the bonus period. **There is no front-running** and being **first or last** to deposit for either distribution **doesn't matter**.

After the LGE event ends, 3,5% of the total supply of MARE will be claimed by users who participate in the event.

The entire USDC proceeds from the LGE, along with 2,5% of total supply of MARE will be used for the MARE/USDC pair on Equilibre.&#x20;

With these conditions, **LGE participants** will **receive 28% more** tokens than they paid for.&#x20;

***(For example, if you participated with 100 USDC, you'll receive 128USDC worth of MARE tokens at launch.)***

***50% of the LGE participant reward tokens will be unlocked instantly. The other 50% will be unlocked over a year.***

The **LP** tokens received by the LGE contract **will be locked** in the LGE contract for a minimum of **180 days**, ensuring plenty of early liquidity. After the lockup period ends, LP tokens will be transferred to the protocol reserves, where the strategy for their usage will be at the discretion of governance.

**LP tokens will** be staked on Equilibre to **earn VARA**. **80%** of the earned VARA will be distributed **to MARE stakers**.&#x20;


# Distribution

<figure><img src="https://3894095702-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0MiDFptmLNYFC2Bpob2N%2Fuploads%2FjJN6gqxn6OqASDS7Ce2p%2Fimage.png?alt=media&amp;token=c665a0a7-a274-4d46-9cae-858459bae3f2" alt=""><figcaption></figcaption></figure>

| Distributed to                                | Token Amount | Percentage |
| --------------------------------------------- | ------------ | ---------- |
| Rewards+Bribes (Community)                    | 60,000,000   | 60%        |
| Protocol Growth                               | 4,000,000    | 4%         |
| Sonne Stakers                                 | 15,000,000   | 15%        |
| Core Team (3 months cliff/2-year linear vest) | 12,000,000   | 12%        |
| LGE Participants                              | 3,500,000    | 3.5%       |
| Community Airdrops                            | 3,000,000    | 3%         |
| Initial Liquidity                             | 2,500,000    | 2.5%       |

Important note: ***Team will be excluded from SONNE staker distribution.***


# Reward Emissions and Bribes

## Reward Emissions and Bribes

* $MAREwill be rewarded to users who lend/borrow tokens in the protocol. Emissions will take place for 3 years.
* $MARE reward emissions will decrease over time.
* For liquidity, Mare Finance will be bribing Equilibre Finance on a weekly basis. Instead of giving tokens freely to liquidity providers, Mare Finance chose this way. Earned VARA will be distributed to $MARE stakers.
* For the first month, $MARE supply emissions rate will be equal to borrow emissions rate. After the first month, it will be %10-%70-%20 Supply-Borrow-Bribe. The rates can be adjusted via governance in order to keep up with the market.​

​

#### Emission Schedule <a href="#emission-schedule" id="emission-schedule"></a>

$MARE emissions over month. y-axis represents $MARE amount, x-axis represents time (every 1 tick represents 1 month or specifically 30-days)

<figure><img src="https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcU7c8Y4J72thAtP7q6mA%2Fuploads%2FZalkNIz2YisERfi6IWHX%2Fimage.png?alt=media&#x26;token=c19d7c9d-e60a-40da-8fe3-1f0e186919cf" alt=""><figcaption></figcaption></figure>

<table><thead><tr><th>Interval</th><th width="80">DAYS</th><th width="110">Emis/mon</th><th>Emis/day</th><th width="117">Lend/day</th><th width="105">Bribes/ day</th><th>Borrow/ day</th></tr></thead><tbody><tr><td>1</td><td>30</td><td>4661745</td><td>155391</td><td>62156</td><td>31078</td><td>62156</td></tr><tr><td>2</td><td>30</td><td>4574609</td><td>152486</td><td>15248</td><td>30497</td><td>106740</td></tr><tr><td>3</td><td>30</td><td>4400338</td><td>146677</td><td>14667</td><td>29335</td><td>102674</td></tr><tr><td>4</td><td>30</td><td>4051797</td><td>135059</td><td>13505</td><td>27011</td><td>94541</td></tr><tr><td>5</td><td>30</td><td>3543507</td><td>118116</td><td>11811</td><td>23623</td><td>82681</td></tr><tr><td>6</td><td>30</td><td>2977126</td><td>99237</td><td>9923</td><td>19847</td><td>69466</td></tr><tr><td>7</td><td>30</td><td>2541449</td><td>84714</td><td>8471</td><td>16942</td><td>59300</td></tr><tr><td>8</td><td>30</td><td>2265520</td><td>75517</td><td>7551</td><td>15103</td><td>52862</td></tr><tr><td>9</td><td>30</td><td>2091250</td><td>69708</td><td>6970</td><td>13941</td><td>48795</td></tr><tr><td>10</td><td>30</td><td>1960547</td><td>65351</td><td>6535</td><td>13070</td><td>45746</td></tr><tr><td>11</td><td>30</td><td>1873411</td><td>62447</td><td>6244</td><td>12489</td><td>43712</td></tr><tr><td>12</td><td>30</td><td>1786276</td><td>59542</td><td>5954</td><td>11908</td><td>41679</td></tr><tr><td>13</td><td>30</td><td>1699140</td><td>56638</td><td>5663</td><td>11327</td><td>39646</td></tr><tr><td>14</td><td>30</td><td>1612005</td><td>53733</td><td>5373</td><td>10746</td><td>37613</td></tr><tr><td>15</td><td>30</td><td>1524869</td><td>50828</td><td>5082</td><td>10165</td><td>35580</td></tr><tr><td>16</td><td>30</td><td>1437734</td><td>47924</td><td>4792</td><td>9584</td><td>33547</td></tr><tr><td>17</td><td>30</td><td>1365121</td><td>45504</td><td>4550</td><td>9100</td><td>31852</td></tr><tr><td>18</td><td>30</td><td>1277986</td><td>42599</td><td>4259</td><td>8519</td><td>29819</td></tr><tr><td>19</td><td>30</td><td>1205373</td><td>40179</td><td>4017</td><td>8035</td><td>28125</td></tr><tr><td>20</td><td>30</td><td>1132760</td><td>37758</td><td>3775</td><td>7551</td><td>26431</td></tr><tr><td>21</td><td>30</td><td>1074670</td><td>35822</td><td>3582</td><td>7164</td><td>25075</td></tr><tr><td>22</td><td>30</td><td>1002057</td><td>33401</td><td>3340</td><td>6680</td><td>23381</td></tr><tr><td>23</td><td>30</td><td>943967</td><td>31465</td><td>3146</td><td>6293</td><td>22025</td></tr><tr><td>24</td><td>30</td><td>885876</td><td>29529</td><td>2952</td><td>5905</td><td>20670</td></tr><tr><td>25</td><td>30</td><td>842309</td><td>28076</td><td>2807</td><td>5615</td><td>19653</td></tr><tr><td>26</td><td>30</td><td>798741</td><td>26624</td><td>2662</td><td>5324</td><td>18637</td></tr><tr><td>27</td><td>30</td><td>755173</td><td>25172</td><td>2517</td><td>5034</td><td>17620</td></tr><tr><td>28</td><td>30</td><td>711605</td><td>23720</td><td>2372</td><td>4744</td><td>16604</td></tr><tr><td>29</td><td>30</td><td>682560</td><td>22752</td><td>2275</td><td>4550</td><td>15926</td></tr><tr><td>30</td><td>30</td><td>653515</td><td>21783</td><td>2178</td><td>4356</td><td>15248</td></tr><tr><td>31</td><td>30</td><td>624470</td><td>20815</td><td>2081</td><td>4163</td><td>14570</td></tr><tr><td>32</td><td>30</td><td>595425</td><td>19847</td><td>1984</td><td>3969</td><td>13893</td></tr><tr><td>33</td><td>30</td><td>580902</td><td>19363</td><td>1936</td><td>3872</td><td>13554</td></tr><tr><td>34</td><td>30</td><td>551857</td><td>18395</td><td>1839</td><td>3679</td><td>12876</td></tr><tr><td>35</td><td>30</td><td>537335</td><td>17911</td><td>1791</td><td>3582</td><td>12537</td></tr><tr><td>36</td><td>30</td><td>522812</td><td>17427</td><td>1742</td><td>3485</td><td>12198</td></tr><tr><td>37</td><td>15</td><td>254144</td><td>16942</td><td>1694</td><td>3388</td><td>11860</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr></tbody></table>

​


# Staking and Revenue Sharing

**sMARE and uMARE** represents the staked version of MARE. The main goal for staking is to distribute protocol revenue and VARA rewards with stakers.&#x20;

Stakers will get %80 of the protocol revenue and 80% of VARA rewards for the **first 3 months**. After team tokens start to get unlocked, **stakers will** start to **get** **100% of the protocol revenue**.&#x20;

Protocol revenue is generated from taking a fee based on reserve factors for different pools. The more riskier the pool is, the more fees will be generated this way.

There will be 2 different pools for staking. One of them will be sMARE where the rewards will be used for buying MARE from the market and distributing it to sMARE stakers.

The other will be uMARE where the rewards will be used for buying USDC from market and distributing it to uMARE stakers.

Reward tokens are shared with stakers on a weekly basis because of Equilibre Finance epochs. First rewards will be distributed 1 week later than the protocol deployment. &#x20;

When you wish to unstake, there will be 1 week delay. For example, if you staked and want to unstake in 21 February 2023, you will be able to withdraw your tokens in 28 February 2023. This is a precaution for just-in-time stakers.

<figure><img src="https://3894095702-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0MiDFptmLNYFC2Bpob2N%2Fuploads%2FqoVpxJuxW72GvojjmKrS%2Fimage.png?alt=media&amp;token=25cee5d0-8abb-4fdb-afa4-b72826c75ae8" alt=""><figcaption><p>MARE stakers will have 2 streams of revenue</p></figcaption></figure>

sMARE Features

* Because we will be distributing VARA rewards, there will be 1 week lock period for sMARE to prevent just-in-time stakers (generally bots). Other than that, there will be no lockup period for sMARE. &#x20;
* **Revenues** will be **distributed** based on your **share of total sMARE** supply. (If you have 100k sMARE and there is total of 1M sMARE , you'll be entitled to %10 of the rewards.

**MARE stakers receive 100% of the protocol revenue** after 3 month&#x73;**.**&#x20;

**MARE stakers also receive 80% of the VARA earned through farming.**&#x20;


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