User Guide

How Ploutos works

• Liquidity pools aggregate user deposits per asset (e.g., USDC, wstETH).

• Borrowers open over-collateralized positions by locking supported collateral and minting variable debt.

• Interest rates are utilization-based: when more of a pool is borrowed, rates rise; when utilization falls, rates fall.

• Health Factor (HF) tracks position safety in real time using oracle prices and asset risk parameters. If HF drops below 1, the position becomes liquidatable.

• Liquidators repay a portion of unhealthy debt and receive a bonus taken from the collateral of the liquidated position.

• A share of interest flows to the Reserve (Collector/Treasury) via the reserve factor.

Once your wallet is connected, you can supply assets to the protocol. Choose a token you hold, approve it for use in the app, and confirm the supply transaction. Supplying assets earns you interest and, if the asset is eligible, allows you to use it as collateral.

When you enable collateral, you unlock the ability to borrow. Select an available asset, enter the amount you want to borrow, and confirm the transaction. The app will calculate and show your Health Factor — this is the key indicator of how safe your position is. A Health Factor above 1 means your account is safe; if it drops below 1, your position may be liquidated.

At any time, you can repay your borrowed assets to reduce your debt, or withdraw your supplied assets if your Health Factor remains healthy.

All of these actions — supplying, enabling collateral, borrowing, repaying and withdrawing — are handled directly from the Ploutos interface without leaving the app.

Health Factor (HF)

• HF > 1: healthy.

• HF < 1: eligible for liquidation.