# Introducing Sumero

What is Sumero?

Sumero is a decentralized finance (DeFi) application built on Ethereum. Sumero will offer 3 synthetic assets using Universal Market Access's (UMA)[ Optimistic Oracle](https://umaproject.org/products/optimistic-oracle) for price security. *Sumero enables anyone to mint and trade these synthetic assets without the need for a financial intermediary.* DeFi enthusiasts looking to gain exposure to assets outside the highly correlated crypto-asset class can mint and purchase these synthetic assets on Sumero. Without having to sign up to any financial intermediary, one can simply swap another asset they own for a synthetic asset and gain exposure. Since these synthetic assets exist in an open financial system, their owners can even put them to work in further ways. For example, they could be lent out to traders looking to make leverage bets in return for a fixed income on top of the expected return from price appreciation. 


# Getting Started

Overview

Those wishing to interact with the Sumero protocol will need to have both Ether (ETH) and USDC available in their respective Web3 wallet. You can purchase both of these cryptocurrencies using a cryptocurrency exchange. Ether is the Ethereum blockchain's native currency and it is required to pay for gas fees, which are also known as transaction fees. The USDC stablecoin is needed to mint synthetic assets using the Sumero protocol as it is the only form of collateral that is accepted. You will also need to install a Web3 wallet (We recommend installing[ Metamask](https://www.youtube.com/watch?v=ZIGUC9JAAw8)) in your browser and send your ETH and USDC from whichever exchange you bought it on to this wallet address. You must then connect your wallet to the Sumero Dapp in order to interact with it.

Please note that Ethereum is still a relatively nascent technology and very much a work in progress in terms of scaling to meet increasing user demand. As a consequence, transaction fees can be very prohibitive at times. If you are not a regular trader, it is recommended to choose a strategy that involves as few Ethereum transactions as possible.

{% hint style="info" %}
MetaMask is a target for phishing attacks. Phishing is a way of stealing your credentials, by tricking you into downloading a malicious version of the app you want to download. A common tactic for phishers is to purchase domain names of common misspellings - hoping you make a mistake typing the URL.

When installing MetaMask, make sure you use the official MetaMask website. Verify the closed lock to the left of the URL. This signifies you are connected through SSL - an encrypted connection. SSL encrypts data in transit and prevents attacks like phishing, and man-in-the-middle attacks. If you do not see the closed lock, exit the page immediately.
{% endhint %}


# Synthetic Asset Positions Dashboard

Overview of Dashboard

### Synth Position Dashboard

Sumero V1 introduces a synthetic asset position dashboard that allows users to quickly glean insights from all of their open and historical synthetic asset positions. The purpose of the dashboard is to allow users to quickly assess key information about their positions so that they can make swift changes to positions if needed. These position changes can be made directly in the dashboard by selecting the 'Options' button under any open synth position.

<figure><img src="/files/b9O79JXJVe7b2bu7FFOd" alt=""><figcaption><p>Synth Position Dashboard</p></figcaption></figure>

### Dashboard Features

* **Clay Balance**
  * Displays Clay token balance
* **zClay Bond Balance**
  * Displays zClay bond balance

<figure><img src="/files/1ZmjxL8EJhK5UyrXbgnZ" alt=""><figcaption><p>Clay &#x26; zClay Balance</p></figcaption></figure>

* **Open Synth Positions**

  * **Synth Position Information Provided:**

    * **Status:** Displays the status of the synth position
    * **Balance:** Synthetic asset token balance available
    * **Collateral Deposited:** The amount of underlying USDC collateral that has been deposited
    * **Synth Tokens Outstanding:** Amount of outstanding synth tokens minted from this position
    * **Minimum Sponsor Position:** Minimum amount of synth tokens that must be minted to open a position
    * **Position Collateral Ratio:** The current collateralization ratio of this open position
    * **Minimum Acceptable Collateral Ratio:** The minimum collateralization ratio needed to keep the position open and above the liquidation threshold
    * **Position Expiry:** The time and date the position expires
    * **EMP Contract Address:** The Ethereum address of the EMP contract
    * **Synthetic Token Contract Address:** The Ethereum address of the synthetic token contract

  <figure><img src="/files/p4cTH178pgauECB8LOCF" alt=""><figcaption><p>Open Synth Position on Dashboard Page</p></figcaption></figure>

  * **Make Position Adjustments:**
    * Using the 'Options' button under open synth positions, users can make adjustments to their positions in several ways
      1. **Deposit USDC**
         * Deposit additional USDC collateral to increase the collateralization ratio.
      2. **Withdraw USDC**
         * Withdraw USDC collateral to acquire some of the underlying collateral. Note this will reduce the position collateralisation ratio.
      3. **Redeem Synth Tokens**
         * Redeem some of the synth tokens for the equivalent collateral value.
      4. **Repay Synth Tokens**
         * Repay some synth tokens to increase the collateralisation ratio. Users can repay their max synth token balance to close a synth position.

<figure><img src="/files/qs821c5wxxmXPqrc7C17" alt=""><figcaption></figcaption></figure>

* **Overview of Past Synth Positions**
  * Displays historical synth positions opened by the user using the Sumero protocol.
* **Other Available Synth Positions**
  * Displays synth positions opened by other users of the protocol. This information can be used to inform eligible position liquidations that liquidators can earn a reward from by proposing the liquidation of a position that meets the liquidation criteria.

<figure><img src="/files/ddMAQU1QhN6tgMWyJ2r2" alt=""><figcaption></figcaption></figure>


# Approved Synthetic Assets

<table><thead><tr><th width="185">Synthetic Asset ID</th><th width="142">Display Name</th><th width="173">Synth Description</th><th width="174">Update Frequency</th><th>Price Feed API</th></tr></thead><tbody><tr><td>VT</td><td>Vanguard Total World Stock ETF</td><td>This synth tracks the spot trading price of the Vanguard Total World Stock Index ETF in USD</td><td>Monday to Friday 9:30am to 4:00pm ET</td><td><a href="https://twelvedata.com/docs#getting-started">https://twelvedata.com/docs#getting-started</a></td></tr><tr><td>USCPI</td><td>Consumer Price Index for All Urban Consumers: All Items in U.S. City Average</td><td>This synth tracks the latest price for the U.S. Consumer Price index for All Urban Consumers: All Items in U.S. City Average</td><td>Monthly</td><td><a href="https://fred.stlouisfed.org/docs/api/fred/">https://fred.stlouisfed.org/docs/api/fred/</a></td></tr><tr><td>NLHPI</td><td>Netherlands House Price Index</td><td>This synth tracks the latest value of the Netherlands House Price Index (NLHPI)</td><td>Monthly</td><td><a href="https://opendata.cbs.nl/ODataApi/odata/83906ENG">https://opendata.cbs.nl/ODataApi/odata/83906ENG</a></td></tr></tbody></table>


# NLHPI

Netherlands House Price Index

## **Synthetic Asset Description**

A synthetic asset that tracks the latest value of the Netherlands House Price Index (NLHPI).\
\
**Display Name:** Netherlands House Price Index\
**Symbol:** NLHPI\
**EMP Price Identifier:** NUMERICAL\
**Market:** Published by [Statistics Netherlands](https://www.cbs.nl/en-gb/figures/detail/83906eng)\
**Frequency:** Monthly\
**Price Feed Source:** <https://opendata.cbs.nl/ODataApi/odata/83906ENG>\
**Data Providers:**

* **Real-time or latest price:** [https://opendata.cbs.nl/ODataApi/odata/83906ENG/UntypedDataSet?$filter=Periods%20eq%20%27YYYYMMMM%27](https://opendata.cbs.nl/ODataApi/odata/83906ENG/UntypedDataSet?$filter=Periods%20eq%20%272023MM01%27)
  * Example of correctly configured URL: <https://opendata.cbs.nl/ODataApi/odata/83906ENG/UntypedDataSet?$filter=Periods%20eq%20%272023MM01%27><br>
* **Historical house price index data for a given month:** [https://opendata.cbs.nl/ODataApi/odata/83906ENG/UntypedDataSet?$filter=Periods%20eq%20%27YYYYMMMM%27](https://opendata.cbs.nl/ODataApi/odata/83906ENG/UntypedDataSet?$filter=Periods%20eq%20%272023MM01%27)
  * Example of correctly configured URL: <https://opendata.cbs.nl/ODataApi/odata/83906ENG/UntypedDataSet?$filter=Periods%20eq%20%272023MM01%27>

### Manual Price Calculation&#x20;

To determine the price for NLHPI for the given request timestamp, voters must do the following:

1. Get request timestamp.
2. Convert to UTC time.
3. Determine which month value should be used based on the request timestamp.
   * If the request timestamp is before the 22nd of the month at 02:00:00, use the price data that was released on the 22nd of the previous month i.e. if the request timestamp is the 21st March, use the price data that was released on 22nd February which is the data for January.
   * If the request timestamp is on or after the 22nd of the month at 02:00:00, use the price data that was released on the 22nd of that month i.e. if the request timestamp is the 22nd March, use the price data that was released on 22nd March which is the data for February.&#x20;
   * **Important:** If the 22nd day of a given month falls on a weekend day, the price is not updated until the following Monday at 02:00:00. In this case, the same rules apply. If the request timestamp falls before the 23rd/24th day of a given month (the date depends on whether or not the 22nd falls on a Saturday or Sunday), use the price data released on the 22nd of the previous month. If the request timestamp falls on or after 02:00:00 on the 23rd/24th, use the price data released for this month.
4. Determine the request date.
   * Once you have determined which month’s pricing data to use, you must convert it to the correct request date format. I.E. If my request timestamp fell on the 21st March, then I should use the price data released on 22nd February 2023 which is the price index data for January. I must deduct one month from 22nd February and convert the final date to YYYYmmMM format such 2023MM01.
   * Get request date in format YYYY-mm-MM by abbreviating it to the year and month i.e. if the request timestamp is 21st March, then we should use the price data that was released 22nd February. The price data for 22nd February is for January 2023. Therefore, the request date is 01/23 then the month and year chosen should be in this format: 2023MM01.
5. Goto [https://opendata.cbs.nl/ODataApi/odata/83906ENG/UntypedDataSet?$filter=Periods eq ’2023MM01’](https://opendata.cbs.nl/ODataApi/odata/83906ENG/UntypedDataSet?$filter=Periods%20eq%20%272023MM01%27)
   * Enter the request date as YYYY-MM format.
6. Get Price.
   * Get the latest value from the “PriceIndexOfExistingOwnHomes\_1” object.

**Example response object:**

```http
{
  "odata.metadata":"https://opendata.cbs.nl/ODataApi/OData/83906ENG/$metadata#Cbs.OData.WebAPI.UntypedDataSet","value":[
    {
      "ID":476,
      "Periods":"2023MM01",
      "PriceIndexOfExistingOwnHomes_1":"   183.3",
      "ChangesComparedToThePreviousPeriod_2":"     1.5",
      "ChangesComparedToThePreviousYear_3":"     1.1",
      "NumberOfSoldDwellings_4":"   13126",
      "ChangesComparedToThePreviousPeriod_5":"   -38.5",
      "ChangesComparedToThePreviousYear_6":"    -6.6",
      "AveragePurchasePrice_7":"  424681",
      "TotalValuePurchasePrices_8":"    5574"
    }
  ]
}
```


# VT

Vanguard Total World Stock ETF

## **Synthetic Asset Description**&#x20;

A synthetic asset that tracks the spot trading price of the Vanguard Total World Stock ETF in USD.

**Display Name:** Vanguard Total World Stock ETF\
**Symbol:** VT\
**EMP Price Identifier:** NUMERICAL\
**Market:** [NYSE Arca](https://www.nyse.com/markets/nyse-arca)\
**Market Timings:** Monday to Friday 9:30 am to 4:00 pm ET (closed on [NYSE holidays](https://www.nyse.com/markets/hours-calendars))\
**Price Feed Source:** <https://twelvedata.com/>\
**Data Providers:**

* Real-time or latest price: [https://api.twelvedata.com/price?symbol=VT\&apikey=API-KEY-VALUE](https://api.twelvedata.com/price?symbol=VT\&apikey=8c28e2ab6088439e92a60426194469af)
* Quote price:[ https://api.twelvedata.com/quote?symbol=VT\&apikey=API-KEY-VALUE](https://api.twelvedata.com/quote?symbol=VT\&apikey=8c28e2ab6088439e92a60426194469af)
* Historical data with 15min intervals: [https://api.twelvedata.com/time\_series?apikey=API\_KEY\_VALUE\&interval=15min\&symbol=VT\&start\_date=YYYY-MM-DD%20HH:mm:ss\&end\_date=YYYY-MM-DD%20HH:mm:ss](https://api.twelvedata.com/time_series?apikey=8c28e2ab6088439e92a60426194469af\&interval=15min\&symbol=VT\&start_date=2023-02-10)

### Manual Price Calculation&#x20;

To determine the correct price for VT for the given request timestamp, voters must do the following:

1. Get the request timestamp.
2. Convert timestamp to UTC time.
3. Convert the date and time to the following format: YYYY-MM-DD HH:mm:ss
4. Determine your Timezone name according to the IANA Time Zone Database. E.g. `America/New_York`, `Asia/Singapore`. A full list of time zones can be found [here ↗](https://en.wikipedia.org/wiki/List_of_tz_database_time_zones).
5. Enter the start\_date as (end\_date - 4 days).
6. Enter the end\_date from step 1.
7. Configure the following URL with the correct values: [https://api.twelvedata.com/time\_series?apikey=API\_KEY\_VALUE\&interval=15min\&symbol=VT\&start\_date=YYYY-MM-DD%20HH:mm:ss\&end\_date=YYYY-MM-DD%20HH:mm:ss](https://api.twelvedata.com/time_series?apikey=8c28e2ab6088439e92a60426194469af\&interval=15min\&symbol=VT\&start_date=2023-02-10)
8. Get the VT price from the response JSON.
   * Get the closing price from the "values" object.

**Example response object**

```http
{
    "meta": {
        "symbol": "VT",
        "interval": "1h",
        "currency": "USD",
        "exchange_timezone": "America/New_York",
        "exchange": "NYSE",
        "mic_code": "ARCX",
        "type": "ETF"
    },
    "values": [
        {
            "datetime": "2023-04-06 09:30:00",
            "open": "91.68000",
            "high": "91.68000",
            "low": "91.30000",
            "close": "91.32000",
            "volume": "179718"
        },
        ....
        {
            "datetime": "2023-04-05 15:30:00",
            "open": "91.59500",
            "high": "91.71000",
            "low": "91.58500",
            "close": "91.64000",
            "volume": "1173185"
        }
    ]
}
```


# USCPI

U.S. Consumer Price Index

## **Synthetic Asset Description**&#x20;

A synthetic asset that tracks the latest price for the U.S. Consumer Price index for All Urban Consumers: All Items in U.S. City Average.

**Display Name:** U.S. Consumer Price Index for All Urban Consumers: All Items in U.S. City Average\
**Symbol:** USCPI\
**EMP Price Identifier:** Numerical\
**Market:** Published by <https://www.bls.gov/>\
**Data Update Frequency:** Monthly\
**Price Feed Source:** <https://fred.stlouisfed.org/docs/api/fred/>\
**Data Providers:**

* **Real-time or latest price:** Use the chart provided by this link <https://fred.stlouisfed.org/series/CPIAUCSL>
* **Historical data:** Configure the following URL by inputting values for 'api\_key=' and 'observation\_start=':
  * <https://api.stlouisfed.org/fred/series/observations?series_id=CPIAUCSL&api_key=API-KEY-VALUE&file_type=json&observation_start=YYYY-MM-DD>

### Manual Price Calculation&#x20;

To determine the monthly price for USCPI for the given month of a request timestamp, voters must do the following:

1. Get the request timestamp.
2. Convert the timestamp to UTC time.
3. Get the exact date/month/year.
4. Go to <https://fred.stlouisfed.org/docs/api/fred/series_observations.html>
5. Acquire an API key.
6. Using the following URL, enter the required values for 'api\_key=' and 'observation\_start=':
   * <https://api.stlouisfed.org/fred/series/observations?series_id=CPIAUCSL&api_key=API-KEY-VALUE&file_type=json&observation_start=YYYY-MM-DD>
7. Paste the configured URL into your browser's search bar.
8. Retrieve the CPI Price from the response JSON. The correct CPI price for a given date will be located beside the “value” keyword within the response JSON.

**Example response object**

{% code overflow="wrap" %}

```http
{"realtime_start":"2023-03-06","realtime_end":"2023-03-06","observation_start":"2022-12-22","observation_end":"9999-12-31","units":"lin","output_type":1,"file_type":"json","order_by":"observation_date","sort_order":"asc","count":2,"offset":0,"limit":100000,"observations":[{"realtime_start":"2023-03-06","realtime_end":"2023-03-06","date":"2022-12-01","value":"298.990"},{"realtime_start":"2023-03-06","realtime_end":"2023-03-06","date":"2023-01-01","value":"300.536"}]}
```

{% endcode %}


# Liquidity Provision

What is Liquidity Provision?

Liquidity pools play a large part in creating a liquid [decentralized finance](https://www.coindesk.com/learn/what-is-defi/) (DeFi) system.

Imagine waiting to order inside a restaurant. Liquidity is comparable to having lots of food available. That would speed up orders and transactions, making customers happy. On the other hand, illiquidity is comparable to having limited food available and long food preparation times with a long line of customers. That would lead to slower orders and slower transactions, creating unhappy customers.

### Who is a Liquidity Provider?

In traditional finance, banks, financial instituations, and principal trading firms all act as liquidity providers in today's markets. These entities are what is known as 'market makers' in the context of traditional financial markets. In contrast, decentralised exchanges and other decentralised finance protocols rely on liquidity pools to function.&#x20;

There are no requirements for becoming a liquidity provider (LP) in DeFi other than possessing the required assets. Anyone with a [MetaMask wallet](https://thedefiant.io/what-is-metamask/) can connect to the DeFi protocol like the Sumero dApp, which connects to the underlying smart contracts hosted on the Ethereum blockchain. Liquidity providers can then select a liquidity pool of a particular trading pair, such as USDC-CLAY, and deposit their assets into it in return for trading fees derived from that asset pair and/or liquidity mining rewards. Whenever other DeFi users trade USDC to Clay or vice verse on SumSwap, the protocol uses the pooled assets to fulfil these trades and gives the [liquidity providers (LPs) a cut](https://help.uniswap.org/en/articles/5391541-provide-liquidity-on-uniswap-v3) in the form of trading fees relative to their stake in the pool. This protocol is what is known as an Automated Market Maker (AMM). AMMs allow digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers.&#x20;


# Liquidity Pools

What is a liquidity pool?

A liquidity pool is a digital pool of cryptocurrency locked in a smart contract. This allows for the creation of liquidity which facilitates faster trading.

A major component of a liquidity pool is [automated market makers](https://www.coindesk.com/learn/2021/08/20/what-is-an-automated-market-maker/) (AMMs). An AMM is a protocol that uses liquidity pools to allow digital assets to be traded in an automated way rather than through a traditional market of buyers and sellers.

AMM platforms allow users to supply  tokens to liquidity pools in return for trading fees and liquidity mining incentives.

Liquidity pools are designed to incentivize users to provide liquidity, hence the name 'liquidity providers' (LPs). After a certain amount of time, LPs are rewarded trading fees and incentives relative to their stake in the pool. This allows a liquidity provider to collect trading fees in return for taking on a higher risk.

### What is the purpose of a liquidity pool?

In a trade, traders or investors can encounter a difference between the expected price and the executed price. That is common in both traditional and crypto markets. The liquidity pool aims to eliminate the issues of illiquid markets by giving incentives to its users and providing liquidity for a share of trading fees.

Trades with liquidity pool programs like SumSwap don't require matching the expected price and the executed price. AMMs, which are programmed to facilitate trades efficiently by eliminating the gap between the buyers and sellers of crypto tokens, making trades on decentralised exchanges easy and reliable.

### How do Sumero's SumSwap Liquidity Pools work?

A Sumero pool is a smart contract that implements the SumSwap decentralised exchange. SumSwap allows for the buying and selling of ERC-20 tokens, including synthetic assets.

As mentioned above, a typical liquidity pool motivates and rewards its users for staking their digital assets in a pool. Rewards can come in the form of crypto rewards or a portion of trading fees from pools where they deposit their assets in.

Here is an example of how that works, with a trader investing $20,000 in a USDC-CLAY liquidity pool using SumSwap.

The steps would be as follows:

* Go to SumSwap.
* Find the USDC-CLAY liquidity pool.
* Deposit a 50/50 split of USDC and CLAY to the pool. In this case, you would deposit $10,000 worth of USDC and $10,000 worth of CLAY.
* Receive USDC-CLAY liquidity provider tokens.
* Deposit these LP tokens into the USDC-CLAY staking pool.
* Earn additional Clay tokens as a reward for staking your LP tokens.

The USDC-CLAY pair that was originally deposited would be earning a portion of the trading fees collected on SumSwap from that liquidity pool. In addition, you would be earning CLAY tokens in exchange for staking your LP tokens.


# LP Tokens

What are LP tokens?

{% hint style="info" %}
**Key Points:**

* Liquidity pool tokens (also known as liquidity provider tokens) are given to users who provide liquidity in liquidity pools. These tokens act as a receipt, allowing you to claim your original stake and interest earned.
* You can also use your LP tokens to compound interest in a yield farm, take out crypto loans, or transfer ownership of the staked liquidity. However, it is important to understand that you don't actually own the associated liquidity once you give up custody of your LP tokens.
  {% endhint %}

For automated market makers (AMMs) like SumSwap to function, liquidity providers must contribute assets to liquidity pools. When tokens are deposited into a crypto liquidity pool, the platform automatically generates a new token that represents the share the depositor owns of that pool. This token acts as a 'receipt' for your underlying share of the pool based on the amount of assets you provided. This is called a liquidity provider (LP) token, and it can be used for a multitude of functions both within its native platform and other decentralized finance (DeFi) apps. These LP tokens allow you to retrieve your original deposit plus any interest gained. You'll find your LP tokens in the wallet you used when providing liquidity. You may need to add the LP token’s [smart contract](https://academy.binance.com/en/articles/what-are-smart-contracts) address to see it in your [crypto wallet](https://academy.binance.com/en/articles/crypto-wallet-types-explained).

LP tokens allow AMMs to be [non-custodial](https://www.gemini.com/cryptopedia/glossary#non-custodial), meaning they do not hold on to your tokens, but instead operate via automated functions that promote decentralization and fairness. Liquidity provider tokens also unlock new layers of token trade and access across the entire DeFi ecosystem, which has facilitated growth in the form of significant network effects. This has the effect of multiplying the liquidity available in the DeFi ecosystem.&#x20;

The non-custodial feature of AMM platforms is key to being part of the decentralized finance ecosystem. On AMM platforms, you remain in control of your assets by receiving LP tokens in return for providing tokens like [ether (ETH)](https://www.gemini.com/cryptopedia/ethereum-blockchain-eth-fees-ether-transaction) to the crypto [liquidity pool](https://www.gemini.com/cryptopedia/glossary#liquidity-pool), which is managed by code and not by human operation. LP tokens represent a crypto liquidity provider’s share of a pool, and the crypto liquidity provider remains entirely in control of the token. Holding these LP tokens allows you total control over when you withdraw your share of the pool without interference from anyone. And since LP tokens are [ERC-20 tokens](https://www.gemini.com/cryptopedia/erc20-token-standard-ethereum), they can be transferred, exchanged, and even [staked](https://www.gemini.com/cryptopedia/staking-rewards-pos-blockchains) on other protocols.

### Sumero LP Tokens

In exchange for depositing assets into a Sumero pool, liquidity providers receive the corresponding pool LP tokens. A Sumero pool LP token is an ERC20 contract specific to each Sumero pool. Hence, LP tokens are transferrable. Holders of Sumero LP tokens may stake the token into a pool’s [staking pool](https://staging.sumero.finance/#/stake) in order to receive Clay token rewards.&#x20;


# Providing Liquidity

How to provide liquidity on Sumero

This guide will walk you through the steps to provide liquidity via the Sumero app.&#x20;

### 1. Navigate To The Pool Page

The first step is to navigate to the Pool page.&#x20;

<figure><img src="/files/0dZvFK2yHXA8tmYWrUHu" alt=""><figcaption></figcaption></figure>

### 2. Select The Provide Tab&#x20;

From the pool page, select the 'Provide' tab.

<figure><img src="/files/yWsooSH2Q9TytX4idP0W" alt=""><figcaption></figcaption></figure>

### 3. Select An Asset To Pool With USDC

From the toggle list in the Asset field, select the asset you wish to pool with USDC. You may wish to consider factors such as total value locked (TVL), trading volume, and your assessment of the risk that the token prices of the USDC-ASSET pair you have selected diverge in the future.&#x20;

<figure><img src="/files/qAdbgbBt4FpuxIgXXhmE" alt=""><figcaption></figcaption></figure>

### 4. Enter Deposit Amounts

In the asset input field, enter the amount of the selected asset you want to contribute to this position. USDC and the selected asset must be deposited in a [50/50 ratio](https://support.uniswap.org/hc/en-us/articles/7423702800141) in order to maintain equilibrium within the pool. In order to simplify this calculation, the corresponding amount of USDC required to open the position will be automatically populated.&#x20;

<figure><img src="/files/2hsofBQPXno01xfMokdl" alt=""><figcaption></figcaption></figure>

### 5. Approve and Add

When you are finished reviewing the respective pool trading fees, you are ready to submit the transaction. First, you may need to approve the Sumero router contract to allow the protocol to spend both of the selected tokens on your behalf. This is only necessary the first time you provide liquidity for each token.

Once this spend approval transaction has been confirmed, click 'Provide Liquidity' to trigger the transaction in your wallet.

<figure><img src="/files/44zyGEMm7h0Byz2MDNV8" alt=""><figcaption></figcaption></figure>

Sign the corresponding transaction in your wallet.

<figure><img src="/files/Xu6bpt25kacbxYPvkac3" alt=""><figcaption></figcaption></figure>

Congrats! Once this final transaction has been signed and confirmed, your assets will be providing liquidity to SumSwap traders and your position will begin earning fees. You can monitor and manage your position on the Sumero [Dashboard page](https://staging.sumero.finance/#/).


# Withdrawing Liquidity

How to remove liquidity from Sumero

This guide will walk you through the steps to withdraw liquidity from the Sumero app.&#x20;

### 1. Navitage To The Pool Page&#x20;

The first step is to navigate to the Pool page.&#x20;

<figure><img src="/files/0dZvFK2yHXA8tmYWrUHu" alt=""><figcaption></figcaption></figure>

### 2. Select The Withdraw Tab

From the pool page, select the 'Withdraw' tab.

<figure><img src="/files/uBCdmlNXfDq5xI9MhwWu" alt=""><figcaption></figcaption></figure>

### 3. Select LP Token&#x20;

From the toggle list in the LP token field, select the LP token you wish to exchange for the underlying asset pair.&#x20;

<figure><img src="/files/dzF6t9Wl2BSJJd9X4hoZ" alt=""><figcaption></figcaption></figure>

### 4. Enter Withdrawal Amounts

You can now decide how much of your LP tokens you would like to exchange for the underlying asset balance. Enter a value into the LP token input field. The corresponding amount of underlying tokens to be returned will be automatically populated. The underlying tokens are returned in a [50/50 ratio](https://support.uniswap.org/hc/en-us/articles/7423702800141), the same ratio applied when depositing.

<figure><img src="/files/sRnlRB6orsjvBKhD1bX2" alt=""><figcaption></figcaption></figure>

### 5. Approve and Withdraw

Finally, you are ready to submit the withdrawal transaction. First, you may need to approve the Sumero router contract to allow the Sumero protocol to spend the LP tokens on your behalf. This is only necessary the first time you interact with the Sumero app using a specific LP token.

Once the spending approval transaction has been confirmed, click 'Withdraw' to trigger the transaction in your wallet.

<figure><img src="/files/YJjId6t6N9Wuzhd2lqHt" alt=""><figcaption></figcaption></figure>

Sign the corresponding transaction in your wallet.

<figure><img src="/files/Xu6bpt25kacbxYPvkac3" alt=""><figcaption></figcaption></figure>

Once this transaction is signed and confirmed, your underlying assets and the rewards accrued will be deposited into your wallet. You can view your closed/historical positions on the Sumero [Dashboard page](https://staging.sumero.finance/#/).


# Pool Fee Distribution

How are pool trading fees distributed amongst liquidity providers?

For every trade made using SumSwap, there is a 0.3% fee taken for swapping tokens. Any fees that are generated through SumSwap trading activity are automatically deposited back into the liquidity pool reserves, creating an auto-compounding effect for liquidity providers. This increases the value of liquidity tokens, functioning as a payout to all liquidity providers proportional to their share of the pool.&#x20;

The liquidity provider owns the same percentage “share” of the pool, but the amount of tokens in the pool goes up when a fee is charged to a trader for a swap. In other words, that fee is distributed to liquidity providers proportional to their contribution to liquidity reserves. For example, if the amount of liquidity you provide adds up to 2% of the pool, you will receive 2% of all fees from that pool beginning from the time you deposited the liquidity orignally. To calculate the fees earned, you will need to use an external dApp or tool such as [APY Vision](https://apy.vision/) or [Yield Watch](https://www.yieldwatch.net/).

For liquidity providers, the assets paid out are in the pair of the tokens they provided into the liquidity pool. For example, if you deposited USDC & CLAY into a liquidity pool, you would receive a portion of the trading fees back in USDC & CLAY as well. Fees are collected by liquidity providers by burning liquidity tokens to remove their proportional share of the underlying reserves.

{% hint style="info" %}
Trading fees cannot be claimed / redeemed; they can only be withdrawn entirely along with the original liquidity added to the pool!
{% endhint %}

### What factors contribute to ROI and fees collected on Uniswap?

* **Pool Parameters** – which fee percentage was set for pool&#x20;
* **Volume** – higher volume pools generate more fees&#x20;
* **TVL** **(Total Value Locked)** – Fees generated by pool have to be be shared with other liquidity providers
* **Volatility** – large swings in price can amplify impermanent loss&#x20;


# Risks

Risks associated with liquidity provision

### **Impermanent Loss**

This is when the total dollar value of the deposited tokens is at a loss from liquidity provision compared to just holding, as the price of the assets in the pool changes. In simple terms, [Impermanent Loss ](https://academy.binance.com/en/articles/impermanent-loss-explained)means that the fiat value of a user’s crypto assets deposited to a pool could decline over time. Tokens might lose value or diverge in price based on supply and demand. When this happens it usually creates an imbalance in liquidity, resulting in an uneven and lower reward, also called impermanent loss. This phenomenon is called impermanent loss because AMMs work with the premise that tokens will return to their original divergence, leaving you with the profit of trading fees. However, this is not always the case, especially with highly volatile tokens in which profits turn into permanent losses. Since impermanent loss happens because of volatility in a trading pair, pools featuring at least one stable asset (an asset whose value is pegged to a fiat currency, most commonly to the USD, such as Dai, USDC or USDT), as is the case with the USDC-ClAY pool, are less vulnerable to impermanent loss. Despite the risk, it is important to note that liquidity provision is often still profitable despite impermanent loss — offset by the pool rewards received, depending on the trading volumes.

### **Smart Contract Vulnerabilities**

Liquidity pools are built on smart contracts that perform market-making. However, mistakes in code can create backdoors that can lead to exploits. In order to minimise this risk, Sumero has commissioned smart contract audits on the codebase which can be seen here (hyperlink). However, there are always risks of there being hidden/unidentified bugs, as is the case in any software application/code.

### **Loss or Theft**

If you lose your LP token, then you lose your share of the liquidity pool and any interest gained.

### Liquidation of Synth Position

In instances where an open synth position is not being correctly collateralized, the position will be partially or fully liquidated. The position holder will lose some or all of their original collateral deposit.

### Malfunctioning Liquidation Bots

Liquidation bots may malfunction and fail to liquidate a position. This would put other synth position holders' ability to withdraw collateral at risk as the market isn't functioning as it is supposed to.

### Lack of Users to Propose Liquidations

The Sumero protocol may not have enough active users to propose liquidations for positions that meet the liquidation criteria. This would put other synth position holders' ability to withdraw collateral at risk as the market isn't functioning as it is supposed to.

### Development of Illiquid Synthetic Asset Markets

Assets that cannot be easily bought or sold are defined as illiquid. Synthetic asset markets can become illiquid if there is a lack of sufficient liquidity provided to the protocol by liquidity providers. If the liquidity of an asset pair starts to dwindle, withdrawals and/or borrows that surpass the available amount of liquidity will fail. While Sumero's incentivization mechanism attempt to hedge against the risk of illiquidity and voided withdrawals, the possibility of illiquidity arising in the system cannot be ignored. The liquidity of each USDC-synth pair ultimately depends on whether or not liquidity providers are comfortable providing liquidity to the protocol in return for the rewards offered.


# Staking&#x20;

What is Staking?

Staking is a way of earning rewards for holding certain cryptocurrencies. If a cryptocurrency you own allows staking, you can stake some of this asset in return for a percentage-rate reward over time. Your assets are still in your possession when you stake them. You are free to unstake them at any time if you wish to trade them.&#x20;

Liquidity Mining reward distributions are available to claim through Sumero's staking contract. USDC-CLAY Liquidity Providers can claim Clay tokens from this contract. \
\
**Features of Staking**

* Staking is open to anyone who wishes to participate
* Staking participants earn rewards in proportion to the tokens they have deposited
* There is no lock up period for staking&#x20;
* The staking reward depends on:
  * The time period that you stake your LP tokens for&#x20;
  * The ratio of staked tokens to the total staked tokens
* There is a reward rate set which is the “number of reward tokens you get per second” (e.g. rewardRate = 100 => 100 tokens rewarded per second)

**Benefits of Staking**&#x20;

* Earn passive interest for assets you plan on holding anyway
* Contribute to the security and efficiency of the protocol you are using


# Liquidity Mining

What is liquidity mining?

{% hint style="info" %}
Sumero's liquidity mining program will begin on launch day and will run until 28th November 2023.&#x20;

The zClay bond component of the liquidity mining program will begin 1 month after Sumero launches so as to allow users to accumulate Clay before it begins.
{% endhint %}

As a DeFi participant, you may want to engage in *liquidity provision* on Sumero. This guide describes the liquidity provision incentivization scheme, also known as *liquidity mining*, at a high level.

### Liquidity Mining

To kickstart the launch of Sumero, we offer an extra incentive to mint synths by rewarding those that offer exposure to DeFi users by pooling them against USDC.&#x20;

Liquidity mining incentives are awarded only to liquidity providers (LP) that either stake their synthetic asset LP tokens on the Sumero protocol and/or lend Clay in return for zClay bonds. Rewards are distributed in proportion to both the amount of capital committed and the length of time it is committed. This process of incentivising early liquidity providers is known as liquidity mining.&#x20;

### Staking Liquidity Provider Tokens

Those seeking to earn Clay can buy or mint a cSynth and pool it with USDC and deposit the LP tokens in the respective staking pool. USDC must be used as collateral when minting synthetic assets. USDC carries low volatility risk and is far more suitable for minting assets in a cryptocurrency bear market. Once the user has minted an asset, they will need to provide liquidity to a liquidity pool along with USDC. You can purchase USDC on the Sumswap exchange or a centralised exchange.

When you fund a pool with USDC and a synthetic asset, you will receive LP tokens which represent your stake in the pool. You then need to stake these LP tokens in order to begin earning liquidity mining rewards. You will continue earning rewards provided your LP tokens remain staked. Those that provide liquidity for these synths will be rewarded in Clay.&#x20;

If/When you want to stop providing liquidity, you can unstake your LP tokens, withdraw your liquidity from the pool, burn the synth, and reclaim your collateral by closing your position on the Mint page.

300m tokens will be mined this way which will be between 28% and 42% of the total Clay supply.&#x20;

| Description                   | Weekly Reward Allocation | Total Reward Allocation |
| ----------------------------- | ------------------------ | ----------------------- |
| Synthetic Asset Staking Pools | 1.8m - 2m Clay           | 48m Clay                |
| zClay Bonds                   | 478,796 Clay             | 50m Clay                |

### Overview

**Liquidity Provision:** minting synthetic assets and funding liquidity pools for these assets in return for LP tokens.

**Liquidity Mining Process:** Deposit collateral (USDC) in order to mint a synthetic asset. Pool that synth with USDC in a 50/50 ratio and receive a liquidity provider (LP) token in return. Stake this LP token to earn liquidity mining rewards.

**Risks Associated with liquidity provision:** The price of the synth may rise relative to the collateral asset staked to such an extent some of the value of your position is [liquidated](https://mbroome02.medium.com/uma-liquidations-what-to-know-b02db66a3b28). Movements in the relative price of assets in the pools can lead to [impermanent loss](https://academy.binance.com/en/articles/impermanent-loss-explained).

**Liquidity Mining Rewards:** Receive a percentage of the Clay issuance allocated to this service. APY is dependent on the amount of competition in the market.      &#x20;

Eg: Deposit USDC and mint some synthetic asset tokens. Pool these synthetic asset tokens with USDC and receive an LP token representing your contribution to the pool. Stake this LP token and earn Clay for as long as it is staked.


# Staking LP Tokens

In order to participate in Sumero's liquidity mining programs, users must stake their USDC-CLAY liquidity provider (LP) tokens.

The first action a user must take in order to begin participating is to *deposit* their USDC-CLAY LP tokens into the canonical USDC-CLAY staking contract, effectively temporarily giving custody over their stake in the liquidity pool to this contract. This is necessary because the staking contract needs to be able to guarantee that liquidity cannot be removed from LPs participating in the program.

Once deposited, staked LP tokens immediately start earning Clay rewards. Users may periodically claim accrued Clay rewards while the program is ongoing or claim once the program has concluded to minimize overhead. The reason your LP tokens earn Clay rewards while staked is that you are increasing the USDC and Clay liquidity of the Sumero protocol which enables the protocol to efficiently facilitate trades between USDC and Clay.

### How To Stake LP Tokens

* Ensure there is sufficient Clay and USDC in your wallet.

<figure><img src="/files/tElhIvDgLIa9WzQ9aRKb" alt=""><figcaption></figcaption></figure>

* Connect your wallet by clicking “Connect Wallet” in the top right corner. We recommend using the Metamask wallet.

<figure><img src="/files/3zJk1H9OUqTpzkLJyE1d" alt=""><figcaption></figcaption></figure>

* Go to the Sumero Pool page.&#x20;

<figure><img src="/files/0KfBwNKXd1nmkDPd6oA0" alt=""><figcaption></figcaption></figure>

* In the 'Provide' tab, select CLAY from the toggle list of token options.

<figure><img src="/files/SpparcOOuWQEsQiqHwK4" alt=""><figcaption></figcaption></figure>

* In the asset field, input the amount of CLAY you would like to deposit into the pool. USDC and the CLAY must be deposited in a [50/50 ratio](https://support.uniswap.org/hc/en-us/articles/7423702800141) in order to maintain equilibrium within the pool. In order to simplify this calculation, the corresponding amount of USDC required to open the position will be automatically populated.&#x20;

<figure><img src="/files/vF5UIkEAZR7iaJzOj9UK" alt=""><figcaption></figcaption></figure>

* When you are finished reviewing the respective pool trading fees, you are ready to submit the transaction. First, you may need to approve the Sumero router contract to allow the protocol to spend both of the selected tokens on your behalf. This is only necessary the first time you provide liquidity for each token. Click “Approve” so that you can deposit your USDC and CLAY tokens. Confirm the transaction in your wallet.&#x20;

<figure><img src="/files/Xu6bpt25kacbxYPvkac3" alt=""><figcaption></figcaption></figure>

* Once this spend approval transaction has been confirmed, click 'Provide Liquidity' to trigger the transaction and sign the corresponding transaction in your wallet.

<figure><img src="/files/VHSOGEQGnPxWGTNPGYcx" alt=""><figcaption></figcaption></figure>

* Once this transaction is confirmed, you will become a liquidity provider for the USDC-CLAY pool on Sumero.&#x20;

<figure><img src="/files/xSemQBm4k0Jsi2RdhfxV" alt=""><figcaption></figcaption></figure>

* When the USDC-CLAY LP tokens appear in your wallet, navigate to the Stake page.

<figure><img src="/files/HlQBjP0amBGMjB37J9rC" alt=""><figcaption></figcaption></figure>

* If you can't see your LP tokens in your wallet, click on the Withdraw tab on the pool page. Then select USDC-CLAY from the toggle list of LP token pairs. Once you have selected USDC-CLAY, click the 'i' button beside the toggle list. Select 'add to metamask' and click 'add token' in your wallet.

<figure><img src="/files/E41ZeojKleIZqD5rn9xo" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/TjUtJ7KXnFKERyMkt9js" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/YjKNi8O8aUGd83TSge6A" alt=""><figcaption></figcaption></figure>

* On the Stake page, select the 'Options' button located under the USDC-CLAY pool.

<figure><img src="/files/9ViGDcgfnpaoqmiThutU" alt=""><figcaption></figcaption></figure>

* Select 'Stake USDC-CLAY'.

<figure><img src="/files/A9v03TtL7ktdcgre7vDT" alt=""><figcaption></figcaption></figure>

* In the input field, enter the amount of LP tokens you want to stake.

<figure><img src="/files/QBQFG4bqwJuxLm0IK6yY" alt=""><figcaption></figcaption></figure>

* You will need to approve the Sumero router contract to allow the protocol to spend your LP tokens on your behalf. This is only necessary the first time you stake your LP tokens.&#x20;

<figure><img src="/files/KyIoCpKWubnSToWDQeLF" alt=""><figcaption></figcaption></figure>

* Click “Approve” and sign the transaction in your wallet.

<figure><img src="/files/Xu6bpt25kacbxYPvkac3" alt=""><figcaption></figcaption></figure>

* Finally, click "Stake" and sign the transaction in your wallet.

<figure><img src="/files/sFx5VIv2bNrzCXk3Jn8n" alt=""><figcaption></figcaption></figure>

* Once this transaction is confirmed, **your USDC-CLAY LP tokens will begin earning Clay staking rewards**. You will be able to see your contribution on the [Stake page](https://staging.sumero.finance/#/stake).

<figure><img src="/files/frTi8oyWqpGJbRfzjGzI" alt=""><figcaption></figcaption></figure>

### Summary

* Users provide liquidity to Sumero's USDC-CLAY pool.&#x20;
* Users receive USDC-CLAY LP tokens in return. These LP tokens represent their portion of the pooled assets.
* Users can then stake these USDC-CLAY LP tokens to earn Clay staking rewards.


# Unstaking LP Tokens

Once users unstake their USDC-CLAY LP tokens, these LP tokens immediately stop earning Clay rewards. Users can still claim any outstanding Clay rewards after they have unstaked their LP tokens.&#x20;

### How to unstake LP tokens

* Go to the Sumero Stake tab.&#x20;

<figure><img src="/files/HlQBjP0amBGMjB37J9rC" alt=""><figcaption></figcaption></figure>

* Connect your wallet by clicking “Connect Wallet” at the top right.&#x20;

<figure><img src="/files/3zJk1H9OUqTpzkLJyE1d" alt=""><figcaption></figcaption></figure>

* Click the 'Options' button under the USDC-CLAY pool.

<figure><img src="/files/9ViGDcgfnpaoqmiThutU" alt=""><figcaption></figcaption></figure>

* Select Unstake USDC-CLAY.

<figure><img src="/files/A9v03TtL7ktdcgre7vDT" alt=""><figcaption></figcaption></figure>

* In the input field, enter the amount of LP tokens you want to unstake.

<figure><img src="/files/MUa9a358iNi0f3TyuG45" alt=""><figcaption></figcaption></figure>

* Select 'Unstake' and sign the transaction in your wallet.

<figure><img src="/files/nG9FFk1BVjBe29LM8CMs" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/Xu6bpt25kacbxYPvkac3" alt=""><figcaption></figcaption></figure>

* Once this transaction is confirmed, **your LP tokens will be returned to your wallet and you will stop earning CLAY staking rewards**.&#x20;

<figure><img src="/files/vpwuYTw7VqlAYbLxnUZF" alt=""><figcaption></figcaption></figure>

* When your LP tokens appear in your wallet, navigate to the Pool page.

<figure><img src="/files/0KfBwNKXd1nmkDPd6oA0" alt=""><figcaption></figcaption></figure>

* Under the 'Withdraw' tab, select USDC-CLAY from the toggle list of LP token options.

<figure><img src="/files/zaoPpIQa8VlXSAxE6CBE" alt=""><figcaption></figcaption></figure>

* Input the amount of USDC-CLAY LP tokens you would like to exchange for the underlying asset pair.

<figure><img src="/files/SvwhQmUhuVJs8yKUyUiy" alt=""><figcaption></figcaption></figure>

* Click 'Approve' to allow the protocol to exchange your LP tokens for the underlying assets. Sign the transaction in your wallet.

<figure><img src="/files/Xu6bpt25kacbxYPvkac3" alt=""><figcaption></figcaption></figure>

* Finally, select the 'Withdraw Liquidity' button and sign the corresponding transaction in your wallet.

<figure><img src="/files/D6LFHvHQlaBLHCAroaWn" alt=""><figcaption></figcaption></figure>

* Once this transaction has been confirmed, the USDC and Clay assets comprising your stake in the pool will be returned to your wallet.

<figure><img src="/files/l5hnwyA0Ryd3oBSJamPq" alt=""><figcaption></figcaption></figure>

### Summary

* Users can unstake their USDC-CLAY LP tokens from the USDC-CLAY staking pool.
* Users receive their original USDC-CLAY LP tokens representing their portion of the pooled assets.
* Users can then exchange their USDC-CLAY LP tokens for the underlying USDC and Clay assets comprising their stake in the pool.


# Claiming Rewards

To claim Clay rewards, stakers must navigate to the Staking page to begin the claiming process.

### How to claim Clay staking rewards

* Enter the Sumero app and connect your wallet by clicking “Connect Wallet” in the top right corner.

<figure><img src="/files/3zJk1H9OUqTpzkLJyE1d" alt=""><figcaption></figcaption></figure>

* Navigate to the Sumero Stake page. &#x20;

<figure><img src="/files/bRfoJLdIi0Dlv5ZpbqHm" alt=""><figcaption></figcaption></figure>

* Select the 'Options' button under the USDC-CLAY staking pool.

<figure><img src="/files/9ViGDcgfnpaoqmiThutU" alt=""><figcaption></figcaption></figure>

* Select 'Get CLAY Reward'.

<figure><img src="/files/A9v03TtL7ktdcgre7vDT" alt=""><figcaption></figcaption></figure>

* Sign the corresponding claim transaction in your wallet.

<figure><img src="/files/Xu6bpt25kacbxYPvkac3" alt=""><figcaption></figcaption></figure>

* Once this transaction has been confirmed, your Clay staking rewards will be deposited into your wallet.


# zClay Bonds

What are zClay bonds?

The bonds are issued at a 60% APY. There will likely also be a secondary market. After the conclusion of issuance, bond prices will solely be determined by the market. If the market is efficient, prices of zClay denominated in Clay on the secondary market would be expected to be the same as the daily issuance price and continue to decline at the same rate shown here once issuance has finished after 1 year. The price should reach almost 1:1 on the final day before maturation.&#x20;

This is a program whereby people can stake the Clay they either mined or purchased and receive a zClay bond in return. &#x20;

Although over the last ten years cryptoassest have been spectacularly successful, valuations have been very volatile prone to short-term profit-seeking despite the fact the full potential of this technology will not be realised for some years. When people take a long-term view, some of the short and medium-term cyclical volatility can be removed from the market. These holders provide a bulwark against fickle short-term speculators. In designing the mining programs therefore, we wanted to implement a mechanism through which people are well-rewarded for taking a long-term view.&#x20;

That mechanism is CLAY bonds whereby holders of CLAY can lend them to the protocol and receive a bond (zCLAY) that entitles them to their loan along with interest denominated in CLAY upon maturation of the bond. Since the interest is only paid upon maturation, it is a [zero-coupon](https://www.investopedia.com/terms/z/zero-couponbond.asp) bond. The bonds return a 60% APY denominated in CLAY. The earlier one lends CLAY to the protocol, the higher their payout in CLAY upon maturation.&#x20;

zClay can be traded on secondary markets such as SumSwap if people wish to exit their positions before maturation of the bond. It is expected zClay will “[trade dirty](https://www.investopedia.com/terms/d/dirtyprice.asp)” meaning it will trade at a steep discount to Clay early on, gradually approaching parity as maturation approaches. Consequently, both short-term and long-term profits denominated in CLAY are possible with zCLAY bonds.

This program will not open until one month after the liquidity program has begun as there needs to be supply of CLAY for people to lend.&#x20;


# Lending Clay

Users can lend Sumero's native CLAY token in return for zCLAY bonds (‘0’ coupon bonds). zClay bonds allow Clay holders to earn Clay rewards in return for locking their Clay for the duration of the bonding period.&#x20;

Eg: Lend 100 CLAY to the protocol on the first day of the bond offering and receive 220 zCLAY that can be redeemed for 220 CLAY upon maturation of the bonds two years later (100 CLAY loan plus 180 CLAY in interest calculated from 60% APY x2)

This program will open one month after the USDC-CLAY LP token staking program has begun as there needs to be supply of CLAY for users to lend. Users can either engage in the liquidity mining staking program before this program starts in order to earn CLAY to lend or buy CLAY directly on the Sumero's SumSwap exchange. Further details of the rewards schedule can be found [here](https://docs.sumero.finance/tokenomics).

### How to lend Clay

* In order to lend Clay, you must first navigate to the Bond page.

<figure><img src="/files/6R6k2ObC78bpVsOhSEAf" alt=""><figcaption></figcaption></figure>

* From the Bond page, select the Lend tab.

<figure><img src="/files/3WLrBVsyQCgHd0KzKffR" alt=""><figcaption></figcaption></figure>

* Enter the amount of Clay you would like to lend in the 'bond amount' input field.
* Your zClay bond amount will be automatically populated and can be seen in the 'zClay minted' field.
* You may need to sign the necessary token spend approval transaction by clicking 'Approve' and signing the corresponding transaction in your wallet. This is only necessary the first time you deposit Clay on the Sumero app.

<figure><img src="/files/Xu6bpt25kacbxYPvkac3" alt=""><figcaption></figcaption></figure>

* Once this token spend approval transaction has been confirmed, select the 'Lend' button and sign the corresponding transaction in your wallet.
* When this final transaction has been confirmed, your zClay bonds will be deposited into your wallet.

<figure><img src="/files/0xhfbYzbr3hRadeQIA2M" alt=""><figcaption></figcaption></figure>

### Overview

* **Service:** Counter some of the short-term cyclical movements in the value of Clay.
* **Process:** Lend Clay to the protocol for 2 years & receive zero-coupon zClay bonds in return.
* **Risk:** Sumero might not be successful and the value of Clay will decline.
* **Reward:** 60% imputed APY denominated in Clay.

{% hint style="info" %}
Make sure to click on the 'i' symbol beside zClay in the 'zClay minted' field in order to add the zClay bond token to your wallet.
{% endhint %}


# Bond Maturation Schedule

| **Day** | **Days to Maturation** | **Daily Yield** | **Profit at Maturation** | **zClay Issued per Clay** |
| ------- | ---------------------- | --------------- | ------------------------ | ------------------------- |
| 1       | 1095                   | 0.1643835616%   | 180.00000%               | 2.8                       |
| 2       | 1094                   | 0.1643835616%   | 179.83562%               | 2.798356164               |
| 3       | 1093                   | 0.1643835616%   | 179.67123%               | 2.796712328               |
| 4       | 1092                   | 0.1643835616%   | 179.50685%               | 2.795068493               |
| 5       | 1091                   | 0.1643835616%   | 179.34247%               | 2.793424657               |
| 6       | 1090                   | 0.1643835616%   | 179.17808%               | 2.791780821               |
| 7       | 1089                   | 0.1643835616%   | 179.01370%               | 2.790136986               |
| 8       | 1088                   | 0.1643835616%   | 178.84932%               | 2.78849315                |
| 9       | 1087                   | 0.1643835616%   | 178.68493%               | 2.786849315               |
| 10      | 1086                   | 0.1643835616%   | 178.52055%               | 2.785205479               |
| 11      | 1085                   | 0.1643835616%   | 178.35616%               | 2.783561643               |
| 12      | 1084                   | 0.1643835616%   | 178.19178%               | 2.781917808               |
| 13      | 1083                   | 0.1643835616%   | 178.02740%               | 2.780273972               |
| 14      | 1082                   | 0.1643835616%   | 177.86301%               | 2.778630137               |
| 15      | 1081                   | 0.1643835616%   | 177.69863%               | 2.776986301               |
| 16      | 1080                   | 0.1643835616%   | 177.53425%               | 2.775342465               |
| 17      | 1079                   | 0.1643835616%   | 177.36986%               | 2.77369863                |
| 18      | 1078                   | 0.1643835616%   | 177.20548%               | 2.772054794               |
| 19      | 1077                   | 0.1643835616%   | 177.04110%               | 2.770410958               |
| 20      | 1076                   | 0.1643835616%   | 176.87671%               | 2.768767123               |
| 21      | 1075                   | 0.1643835616%   | 176.71233%               | 2.767123287               |
| 22      | 1074                   | 0.1643835616%   | 176.54795%               | 2.765479452               |
| 23      | 1073                   | 0.1643835616%   | 176.38356%               | 2.763835616               |
| 24      | 1072                   | 0.1643835616%   | 176.21918%               | 2.76219178                |
| 25      | 1071                   | 0.1643835616%   | 176.05479%               | 2.760547945               |
| 26      | 1070                   | 0.1643835616%   | 175.89041%               | 2.758904109               |
| 27      | 1069                   | 0.1643835616%   | 175.72603%               | 2.757260274               |
| 28      | 1068                   | 0.1643835616%   | 175.56164%               | 2.755616438               |
| 29      | 1067                   | 0.1643835616%   | 175.39726%               | 2.753972602               |
| 30      | 1066                   | 0.1643835616%   | 175.23288%               | 2.752328767               |
| 31      | 1065                   | 0.1643835616%   | 175.06849%               | 2.750684931               |
| 32      | 1064                   | 0.1643835616%   | 174.90411%               | 2.749041095               |
| 33      | 1063                   | 0.1643835616%   | 174.73973%               | 2.74739726                |
| 34      | 1062                   | 0.1643835616%   | 174.57534%               | 2.745753424               |
| 35      | 1061                   | 0.1643835616%   | 174.41096%               | 2.744109589               |
| 36      | 1060                   | 0.1643835616%   | 174.24658%               | 2.742465753               |
| 37      | 1059                   | 0.1643835616%   | 174.08219%               | 2.740821917               |
| 38      | 1058                   | 0.1643835616%   | 173.91781%               | 2.739178082               |
| 39      | 1057                   | 0.1643835616%   | 173.75342%               | 2.737534246               |
| 40      | 1056                   | 0.1643835616%   | 173.58904%               | 2.73589041                |
| 41      | 1055                   | 0.1643835616%   | 173.42466%               | 2.734246575               |
| 42      | 1054                   | 0.1643835616%   | 173.26027%               | 2.732602739               |
| 43      | 1053                   | 0.1643835616%   | 173.09589%               | 2.730958904               |
| 44      | 1052                   | 0.1643835616%   | 172.93151%               | 2.729315068               |
| 45      | 1051                   | 0.1643835616%   | 172.76712%               | 2.727671232               |
| 46      | 1050                   | 0.1643835616%   | 172.60274%               | 2.726027397               |
| 47      | 1049                   | 0.1643835616%   | 172.43836%               | 2.724383561               |
| 48      | 1048                   | 0.1643835616%   | 172.27397%               | 2.722739726               |
| 49      | 1047                   | 0.1643835616%   | 172.10959%               | 2.72109589                |
| 50      | 1046                   | 0.1643835616%   | 171.94521%               | 2.719452054               |
| 51      | 1045                   | 0.1643835616%   | 171.78082%               | 2.717808219               |
| 52      | 1044                   | 0.1643835616%   | 171.61644%               | 2.716164383               |
| 53      | 1043                   | 0.1643835616%   | 171.45205%               | 2.714520547               |
| 54      | 1042                   | 0.1643835616%   | 171.28767%               | 2.712876712               |
| 55      | 1041                   | 0.1643835616%   | 171.12329%               | 2.711232876               |
| 56      | 1040                   | 0.1643835616%   | 170.95890%               | 2.709589041               |
| 57      | 1039                   | 0.1643835616%   | 170.79452%               | 2.707945205               |
| 58      | 1038                   | 0.1643835616%   | 170.63014%               | 2.706301369               |
| 59      | 1037                   | 0.1643835616%   | 170.46575%               | 2.704657534               |
| 60      | 1036                   | 0.1643835616%   | 170.30137%               | 2.703013698               |
| 61      | 1035                   | 0.1643835616%   | 170.13699%               | 2.701369863               |
| 62      | 1034                   | 0.1643835616%   | 169.97260%               | 2.699726027               |
| 63      | 1033                   | 0.1643835616%   | 169.80822%               | 2.698082191               |
| 64      | 1032                   | 0.1643835616%   | 169.64384%               | 2.696438356               |
| 65      | 1031                   | 0.1643835616%   | 169.47945%               | 2.69479452                |
| 66      | 1030                   | 0.1643835616%   | 169.31507%               | 2.693150684               |
| 67      | 1029                   | 0.1643835616%   | 169.15068%               | 2.691506849               |
| 68      | 1028                   | 0.1643835616%   | 168.98630%               | 2.689863013               |
| 69      | 1027                   | 0.1643835616%   | 168.82192%               | 2.688219178               |
| 70      | 1026                   | 0.1643835616%   | 168.65753%               | 2.686575342               |
| 71      | 1025                   | 0.1643835616%   | 168.49315%               | 2.684931506               |
| 72      | 1024                   | 0.1643835616%   | 168.32877%               | 2.683287671               |
| 73      | 1023                   | 0.1643835616%   | 168.16438%               | 2.681643835               |
| 74      | 1022                   | 0.1643835616%   | 168.00000%               | 2.68                      |
| 75      | 1021                   | 0.1643835616%   | 167.83562%               | 2.678356164               |
| 76      | 1020                   | 0.1643835616%   | 167.67123%               | 2.676712328               |
| 77      | 1019                   | 0.1643835616%   | 167.50685%               | 2.675068493               |
| 78      | 1018                   | 0.1643835616%   | 167.34247%               | 2.673424657               |
| 79      | 1017                   | 0.1643835616%   | 167.17808%               | 2.671780821               |
| 80      | 1016                   | 0.1643835616%   | 167.01370%               | 2.670136986               |
| 81      | 1015                   | 0.1643835616%   | 166.84932%               | 2.66849315                |
| 82      | 1014                   | 0.1643835616%   | 166.68493%               | 2.666849315               |
| 83      | 1013                   | 0.1643835616%   | 166.52055%               | 2.665205479               |
| 84      | 1012                   | 0.1643835616%   | 166.35616%               | 2.663561643               |
| 85      | 1011                   | 0.1643835616%   | 166.19178%               | 2.661917808               |
| 86      | 1010                   | 0.1643835616%   | 166.02740%               | 2.660273972               |
| 87      | 1009                   | 0.1643835616%   | 165.86301%               | 2.658630137               |
| 88      | 1008                   | 0.1643835616%   | 165.69863%               | 2.656986301               |
| 89      | 1007                   | 0.1643835616%   | 165.53425%               | 2.655342465               |
| 90      | 1006                   | 0.1643835616%   | 165.36986%               | 2.65369863                |
| 91      | 1005                   | 0.1643835616%   | 165.20548%               | 2.652054794               |
| 92      | 1004                   | 0.1643835616%   | 165.04110%               | 2.650410958               |
| 93      | 1003                   | 0.1643835616%   | 164.87671%               | 2.648767123               |
| 94      | 1002                   | 0.1643835616%   | 164.71233%               | 2.647123287               |
| 95      | 1001                   | 0.1643835616%   | 164.54795%               | 2.645479452               |
| 96      | 1000                   | 0.1643835616%   | 164.38356%               | 2.643835616               |
| 97      | 999                    | 0.1643835616%   | 164.21918%               | 2.64219178                |
| 98      | 998                    | 0.1643835616%   | 164.05479%               | 2.640547945               |
| 99      | 997                    | 0.1643835616%   | 163.89041%               | 2.638904109               |
| 100     | 996                    | 0.1643835616%   | 163.72603%               | 2.637260274               |
| 101     | 995                    | 0.1643835616%   | 163.56164%               | 2.635616438               |
| 102     | 994                    | 0.1643835616%   | 163.39726%               | 2.633972602               |
| 103     | 993                    | 0.1643835616%   | 163.23288%               | 2.632328767               |
| 104     | 992                    | 0.1643835616%   | 163.06849%               | 2.630684931               |
| 105     | 991                    | 0.1643835616%   | 162.90411%               | 2.629041095               |
| 106     | 990                    | 0.1643835616%   | 162.73973%               | 2.62739726                |
| 107     | 989                    | 0.1643835616%   | 162.57534%               | 2.625753424               |
| 108     | 988                    | 0.1643835616%   | 162.41096%               | 2.624109589               |
| 109     | 987                    | 0.1643835616%   | 162.24658%               | 2.622465753               |
| 110     | 986                    | 0.1643835616%   | 162.08219%               | 2.620821917               |
| 111     | 985                    | 0.1643835616%   | 161.91781%               | 2.619178082               |
| 112     | 984                    | 0.1643835616%   | 161.75342%               | 2.617534246               |
| 113     | 983                    | 0.1643835616%   | 161.58904%               | 2.615890411               |
| 114     | 982                    | 0.1643835616%   | 161.42466%               | 2.614246575               |
| 115     | 981                    | 0.1643835616%   | 161.26027%               | 2.612602739               |
| 116     | 980                    | 0.1643835616%   | 161.09589%               | 2.610958904               |
| 117     | 979                    | 0.1643835616%   | 160.93151%               | 2.609315068               |
| 118     | 978                    | 0.1643835616%   | 160.76712%               | 2.607671232               |
| 119     | 977                    | 0.1643835616%   | 160.60274%               | 2.606027397               |
| 120     | 976                    | 0.1643835616%   | 160.43836%               | 2.604383561               |
| 121     | 975                    | 0.1643835616%   | 160.27397%               | 2.602739726               |
| 122     | 974                    | 0.1643835616%   | 160.10959%               | 2.60109589                |
| 123     | 973                    | 0.1643835616%   | 159.94521%               | 2.599452054               |
| 124     | 972                    | 0.1643835616%   | 159.78082%               | 2.597808219               |
| 125     | 971                    | 0.1643835616%   | 159.61644%               | 2.596164383               |
| 126     | 970                    | 0.1643835616%   | 159.45205%               | 2.594520548               |
| 127     | 969                    | 0.1643835616%   | 159.28767%               | 2.592876712               |
| 128     | 968                    | 0.1643835616%   | 159.12329%               | 2.591232876               |
| 129     | 967                    | 0.1643835616%   | 158.95890%               | 2.589589041               |
| 130     | 966                    | 0.1643835616%   | 158.79452%               | 2.587945205               |
| 131     | 965                    | 0.1643835616%   | 158.63014%               | 2.586301369               |
| 132     | 964                    | 0.1643835616%   | 158.46575%               | 2.584657534               |
| 133     | 963                    | 0.1643835616%   | 158.30137%               | 2.583013698               |
| 134     | 962                    | 0.1643835616%   | 158.13699%               | 2.581369863               |
| 135     | 961                    | 0.1643835616%   | 157.97260%               | 2.579726027               |
| 136     | 960                    | 0.1643835616%   | 157.80822%               | 2.578082191               |
| 137     | 959                    | 0.1643835616%   | 157.64384%               | 2.576438356               |
| 138     | 958                    | 0.1643835616%   | 157.47945%               | 2.57479452                |
| 139     | 957                    | 0.1643835616%   | 157.31507%               | 2.573150685               |
| 140     | 956                    | 0.1643835616%   | 157.15068%               | 2.571506849               |
| 141     | 955                    | 0.1643835616%   | 156.98630%               | 2.569863013               |
| 142     | 954                    | 0.1643835616%   | 156.82192%               | 2.568219178               |
| 143     | 953                    | 0.1643835616%   | 156.65753%               | 2.566575342               |
| 144     | 952                    | 0.1643835616%   | 156.49315%               | 2.564931506               |
| 145     | 951                    | 0.1643835616%   | 156.32877%               | 2.563287671               |
| 146     | 950                    | 0.1643835616%   | 156.16438%               | 2.561643835               |
| 147     | 949                    | 0.1643835616%   | 156.00000%               | 2.56                      |
| 148     | 948                    | 0.1643835616%   | 155.83562%               | 2.558356164               |
| 149     | 947                    | 0.1643835616%   | 155.67123%               | 2.556712328               |
| 150     | 946                    | 0.1643835616%   | 155.50685%               | 2.555068493               |
| 151     | 945                    | 0.1643835616%   | 155.34247%               | 2.553424657               |
| 152     | 944                    | 0.1643835616%   | 155.17808%               | 2.551780822               |
| 153     | 943                    | 0.1643835616%   | 155.01370%               | 2.550136986               |
| 154     | 942                    | 0.1643835616%   | 154.84932%               | 2.54849315                |
| 155     | 941                    | 0.1643835616%   | 154.68493%               | 2.546849315               |
| 156     | 940                    | 0.1643835616%   | 154.52055%               | 2.545205479               |
| 157     | 939                    | 0.1643835616%   | 154.35616%               | 2.543561643               |
| 158     | 938                    | 0.1643835616%   | 154.19178%               | 2.541917808               |
| 159     | 937                    | 0.1643835616%   | 154.02740%               | 2.540273972               |
| 160     | 936                    | 0.1643835616%   | 153.86301%               | 2.538630137               |
| 161     | 935                    | 0.1643835616%   | 153.69863%               | 2.536986301               |
| 162     | 934                    | 0.1643835616%   | 153.53425%               | 2.535342465               |
| 163     | 933                    | 0.1643835616%   | 153.36986%               | 2.53369863                |
| 164     | 932                    | 0.1643835616%   | 153.20548%               | 2.532054794               |
| 165     | 931                    | 0.1643835616%   | 153.04110%               | 2.530410958               |
| 166     | 930                    | 0.1643835616%   | 152.87671%               | 2.528767123               |
| 167     | 929                    | 0.1643835616%   | 152.71233%               | 2.527123287               |
| 168     | 928                    | 0.1643835616%   | 152.54795%               | 2.525479452               |
| 169     | 927                    | 0.1643835616%   | 152.38356%               | 2.523835616               |
| 170     | 926                    | 0.1643835616%   | 152.21918%               | 2.52219178                |
| 171     | 925                    | 0.1643835616%   | 152.05479%               | 2.520547945               |
| 172     | 924                    | 0.1643835616%   | 151.89041%               | 2.518904109               |
| 173     | 923                    | 0.1643835616%   | 151.72603%               | 2.517260274               |
| 174     | 922                    | 0.1643835616%   | 151.56164%               | 2.515616438               |
| 175     | 921                    | 0.1643835616%   | 151.39726%               | 2.513972602               |
| 176     | 920                    | 0.1643835616%   | 151.23288%               | 2.512328767               |
| 177     | 919                    | 0.1643835616%   | 151.06849%               | 2.510684931               |
| 178     | 918                    | 0.1643835616%   | 150.90411%               | 2.509041095               |
| 179     | 917                    | 0.1643835616%   | 150.73973%               | 2.50739726                |
| 180     | 916                    | 0.1643835616%   | 150.57534%               | 2.505753424               |
| 181     | 915                    | 0.1643835616%   | 150.41096%               | 2.504109589               |
| 182     | 914                    | 0.1643835616%   | 150.24658%               | 2.502465753               |
| 183     | 913                    | 0.1643835616%   | 150.08219%               | 2.500821917               |
| 184     | 912                    | 0.1643835616%   | 149.91781%               | 2.499178082               |
| 185     | 911                    | 0.1643835616%   | 149.75342%               | 2.497534246               |
| 186     | 910                    | 0.1643835616%   | 149.58904%               | 2.495890411               |
| 187     | 909                    | 0.1643835616%   | 149.42466%               | 2.494246575               |
| 188     | 908                    | 0.1643835616%   | 149.26027%               | 2.492602739               |
| 189     | 907                    | 0.1643835616%   | 149.09589%               | 2.490958904               |
| 190     | 906                    | 0.1643835616%   | 148.93151%               | 2.489315068               |
| 191     | 905                    | 0.1643835616%   | 148.76712%               | 2.487671232               |
| 192     | 904                    | 0.1643835616%   | 148.60274%               | 2.486027397               |
| 193     | 903                    | 0.1643835616%   | 148.43836%               | 2.484383561               |
| 194     | 902                    | 0.1643835616%   | 148.27397%               | 2.482739726               |
| 195     | 901                    | 0.1643835616%   | 148.10959%               | 2.48109589                |
| 196     | 900                    | 0.1643835616%   | 147.94521%               | 2.479452054               |
| 197     | 899                    | 0.1643835616%   | 147.78082%               | 2.477808219               |
| 198     | 898                    | 0.1643835616%   | 147.61644%               | 2.476164383               |
| 199     | 897                    | 0.1643835616%   | 147.45205%               | 2.474520548               |
| 200     | 896                    | 0.1643835616%   | 147.28767%               | 2.472876712               |
| 201     | 895                    | 0.1643835616%   | 147.12329%               | 2.471232876               |
| 202     | 894                    | 0.1643835616%   | 146.95890%               | 2.469589041               |
| 203     | 893                    | 0.1643835616%   | 146.79452%               | 2.467945205               |
| 204     | 892                    | 0.1643835616%   | 146.63014%               | 2.466301369               |
| 205     | 891                    | 0.1643835616%   | 146.46575%               | 2.464657534               |
| 206     | 890                    | 0.1643835616%   | 146.30137%               | 2.463013698               |
| 207     | 889                    | 0.1643835616%   | 146.13699%               | 2.461369863               |
| 208     | 888                    | 0.1643835616%   | 145.97260%               | 2.459726027               |
| 209     | 887                    | 0.1643835616%   | 145.80822%               | 2.458082191               |
| 210     | 886                    | 0.1643835616%   | 145.64384%               | 2.456438356               |
| 211     | 885                    | 0.1643835616%   | 145.47945%               | 2.45479452                |
| 212     | 884                    | 0.1643835616%   | 145.31507%               | 2.453150685               |
| 213     | 883                    | 0.1643835616%   | 145.15068%               | 2.451506849               |
| 214     | 882                    | 0.1643835616%   | 144.98630%               | 2.449863013               |
| 215     | 881                    | 0.1643835616%   | 144.82192%               | 2.448219178               |
| 216     | 880                    | 0.1643835616%   | 144.65753%               | 2.446575342               |
| 217     | 879                    | 0.1643835616%   | 144.49315%               | 2.444931506               |
| 218     | 878                    | 0.1643835616%   | 144.32877%               | 2.443287671               |
| 219     | 877                    | 0.1643835616%   | 144.16438%               | 2.441643835               |
| 220     | 876                    | 0.1643835616%   | 144.00000%               | 2.44                      |
| 221     | 875                    | 0.1643835616%   | 143.83562%               | 2.438356164               |
| 222     | 874                    | 0.1643835616%   | 143.67123%               | 2.436712328               |
| 223     | 873                    | 0.1643835616%   | 143.50685%               | 2.435068493               |
| 224     | 872                    | 0.1643835616%   | 143.34247%               | 2.433424657               |
| 225     | 871                    | 0.1643835616%   | 143.17808%               | 2.431780822               |
| 226     | 870                    | 0.1643835616%   | 143.01370%               | 2.430136986               |
| 227     | 869                    | 0.1643835616%   | 142.84932%               | 2.42849315                |
| 228     | 868                    | 0.1643835616%   | 142.68493%               | 2.426849315               |
| 229     | 867                    | 0.1643835616%   | 142.52055%               | 2.425205479               |
| 230     | 866                    | 0.1643835616%   | 142.35616%               | 2.423561643               |
| 231     | 865                    | 0.1643835616%   | 142.19178%               | 2.421917808               |
| 232     | 864                    | 0.1643835616%   | 142.02740%               | 2.420273972               |
| 233     | 863                    | 0.1643835616%   | 141.86301%               | 2.418630137               |
| 234     | 862                    | 0.1643835616%   | 141.69863%               | 2.416986301               |
| 235     | 861                    | 0.1643835616%   | 141.53425%               | 2.415342465               |
| 236     | 860                    | 0.1643835616%   | 141.36986%               | 2.41369863                |
| 237     | 859                    | 0.1643835616%   | 141.20548%               | 2.412054794               |
| 238     | 858                    | 0.1643835616%   | 141.04110%               | 2.410410959               |
| 239     | 857                    | 0.1643835616%   | 140.87671%               | 2.408767123               |
| 240     | 856                    | 0.1643835616%   | 140.71233%               | 2.407123287               |
| 241     | 855                    | 0.1643835616%   | 140.54795%               | 2.405479452               |
| 242     | 854                    | 0.1643835616%   | 140.38356%               | 2.403835616               |
| 243     | 853                    | 0.1643835616%   | 140.21918%               | 2.40219178                |
| 244     | 852                    | 0.1643835616%   | 140.05479%               | 2.400547945               |
| 245     | 851                    | 0.1643835616%   | 139.89041%               | 2.398904109               |
| 246     | 850                    | 0.1643835616%   | 139.72603%               | 2.397260274               |
| 247     | 849                    | 0.1643835616%   | 139.56164%               | 2.395616438               |
| 248     | 848                    | 0.1643835616%   | 139.39726%               | 2.393972602               |
| 249     | 847                    | 0.1643835616%   | 139.23288%               | 2.392328767               |
| 250     | 846                    | 0.1643835616%   | 139.06849%               | 2.390684931               |
| 251     | 845                    | 0.1643835616%   | 138.90411%               | 2.389041096               |
| 252     | 844                    | 0.1643835616%   | 138.73973%               | 2.38739726                |
| 253     | 843                    | 0.1643835616%   | 138.57534%               | 2.385753424               |
| 254     | 842                    | 0.1643835616%   | 138.41096%               | 2.384109589               |
| 255     | 841                    | 0.1643835616%   | 138.24658%               | 2.382465753               |
| 256     | 840                    | 0.1643835616%   | 138.08219%               | 2.380821917               |
| 257     | 839                    | 0.1643835616%   | 137.91781%               | 2.379178082               |
| 258     | 838                    | 0.1643835616%   | 137.75342%               | 2.377534246               |
| 259     | 837                    | 0.1643835616%   | 137.58904%               | 2.375890411               |
| 260     | 836                    | 0.1643835616%   | 137.42466%               | 2.374246575               |
| 261     | 835                    | 0.1643835616%   | 137.26027%               | 2.372602739               |
| 262     | 834                    | 0.1643835616%   | 137.09589%               | 2.370958904               |
| 263     | 833                    | 0.1643835616%   | 136.93151%               | 2.369315068               |
| 264     | 832                    | 0.1643835616%   | 136.76712%               | 2.367671233               |
| 265     | 831                    | 0.1643835616%   | 136.60274%               | 2.366027397               |
| 266     | 830                    | 0.1643835616%   | 136.43836%               | 2.364383561               |
| 267     | 829                    | 0.1643835616%   | 136.27397%               | 2.362739726               |
| 268     | 828                    | 0.1643835616%   | 136.10959%               | 2.36109589                |
| 269     | 827                    | 0.1643835616%   | 135.94521%               | 2.359452054               |
| 270     | 826                    | 0.1643835616%   | 135.78082%               | 2.357808219               |
| 271     | 825                    | 0.1643835616%   | 135.61644%               | 2.356164383               |
| 272     | 824                    | 0.1643835616%   | 135.45205%               | 2.354520548               |
| 273     | 823                    | 0.1643835616%   | 135.28767%               | 2.352876712               |
| 274     | 822                    | 0.1643835616%   | 135.12329%               | 2.351232876               |
| 275     | 821                    | 0.1643835616%   | 134.95890%               | 2.349589041               |
| 276     | 820                    | 0.1643835616%   | 134.79452%               | 2.347945205               |
| 277     | 819                    | 0.1643835616%   | 134.63014%               | 2.34630137                |
| 278     | 818                    | 0.1643835616%   | 134.46575%               | 2.344657534               |
| 279     | 817                    | 0.1643835616%   | 134.30137%               | 2.343013698               |
| 280     | 816                    | 0.1643835616%   | 134.13699%               | 2.341369863               |
| 281     | 815                    | 0.1643835616%   | 133.97260%               | 2.339726027               |
| 282     | 814                    | 0.1643835616%   | 133.80822%               | 2.338082191               |
| 283     | 813                    | 0.1643835616%   | 133.64384%               | 2.336438356               |
| 284     | 812                    | 0.1643835616%   | 133.47945%               | 2.33479452                |
| 285     | 811                    | 0.1643835616%   | 133.31507%               | 2.333150685               |
| 286     | 810                    | 0.1643835616%   | 133.15068%               | 2.331506849               |
| 287     | 809                    | 0.1643835616%   | 132.98630%               | 2.329863013               |
| 288     | 808                    | 0.1643835616%   | 132.82192%               | 2.328219178               |
| 289     | 807                    | 0.1643835616%   | 132.65753%               | 2.326575342               |
| 290     | 806                    | 0.1643835616%   | 132.49315%               | 2.324931506               |
| 291     | 805                    | 0.1643835616%   | 132.32877%               | 2.323287671               |
| 292     | 804                    | 0.1643835616%   | 132.16438%               | 2.321643835               |
| 293     | 803                    | 0.1643835616%   | 132.00000%               | 2.32                      |
| 294     | 802                    | 0.1643835616%   | 131.83562%               | 2.318356164               |
| 295     | 801                    | 0.1643835616%   | 131.67123%               | 2.316712328               |
| 296     | 800                    | 0.1643835616%   | 131.50685%               | 2.315068493               |
| 297     | 799                    | 0.1643835616%   | 131.34247%               | 2.313424657               |
| 298     | 798                    | 0.1643835616%   | 131.17808%               | 2.311780822               |
| 299     | 797                    | 0.1643835616%   | 131.01370%               | 2.310136986               |
| 300     | 796                    | 0.1643835616%   | 130.84932%               | 2.30849315                |
| 301     | 795                    | 0.1643835616%   | 130.68493%               | 2.306849315               |
| 302     | 794                    | 0.1643835616%   | 130.52055%               | 2.305205479               |
| 303     | 793                    | 0.1643835616%   | 130.35616%               | 2.303561643               |
| 304     | 792                    | 0.1643835616%   | 130.19178%               | 2.301917808               |
| 305     | 791                    | 0.1643835616%   | 130.02740%               | 2.300273972               |
| 306     | 790                    | 0.1643835616%   | 129.86301%               | 2.298630137               |
| 307     | 789                    | 0.1643835616%   | 129.69863%               | 2.296986301               |
| 308     | 788                    | 0.1643835616%   | 129.53425%               | 2.295342465               |
| 309     | 787                    | 0.1643835616%   | 129.36986%               | 2.29369863                |
| 310     | 786                    | 0.1643835616%   | 129.20548%               | 2.292054794               |
| 311     | 785                    | 0.1643835616%   | 129.04110%               | 2.290410959               |
| 312     | 784                    | 0.1643835616%   | 128.87671%               | 2.288767123               |
| 313     | 783                    | 0.1643835616%   | 128.71233%               | 2.287123287               |
| 314     | 782                    | 0.1643835616%   | 128.54795%               | 2.285479452               |
| 315     | 781                    | 0.1643835616%   | 128.38356%               | 2.283835616               |
| 316     | 780                    | 0.1643835616%   | 128.21918%               | 2.28219178                |
| 317     | 779                    | 0.1643835616%   | 128.05479%               | 2.280547945               |
| 318     | 778                    | 0.1643835616%   | 127.89041%               | 2.278904109               |
| 319     | 777                    | 0.1643835616%   | 127.72603%               | 2.277260274               |
| 320     | 776                    | 0.1643835616%   | 127.56164%               | 2.275616438               |
| 321     | 775                    | 0.1643835616%   | 127.39726%               | 2.273972602               |
| 322     | 774                    | 0.1643835616%   | 127.23288%               | 2.272328767               |
| 323     | 773                    | 0.1643835616%   | 127.06849%               | 2.270684931               |
| 324     | 772                    | 0.1643835616%   | 126.90411%               | 2.269041096               |
| 325     | 771                    | 0.1643835616%   | 126.73973%               | 2.26739726                |
| 326     | 770                    | 0.1643835616%   | 126.57534%               | 2.265753424               |
| 327     | 769                    | 0.1643835616%   | 126.41096%               | 2.264109589               |
| 328     | 768                    | 0.1643835616%   | 126.24658%               | 2.262465753               |
| 329     | 767                    | 0.1643835616%   | 126.08219%               | 2.260821917               |
| 330     | 766                    | 0.1643835616%   | 125.91781%               | 2.259178082               |
| 331     | 765                    | 0.1643835616%   | 125.75342%               | 2.257534246               |
| 332     | 764                    | 0.1643835616%   | 125.58904%               | 2.255890411               |
| 333     | 763                    | 0.1643835616%   | 125.42466%               | 2.254246575               |
| 334     | 762                    | 0.1643835616%   | 125.26027%               | 2.252602739               |
| 335     | 761                    | 0.1643835616%   | 125.09589%               | 2.250958904               |
| 336     | 760                    | 0.1643835616%   | 124.93151%               | 2.249315068               |
| 337     | 759                    | 0.1643835616%   | 124.76712%               | 2.247671233               |
| 338     | 758                    | 0.1643835616%   | 124.60274%               | 2.246027397               |
| 339     | 757                    | 0.1643835616%   | 124.43836%               | 2.244383561               |
| 340     | 756                    | 0.1643835616%   | 124.27397%               | 2.242739726               |
| 341     | 755                    | 0.1643835616%   | 124.10959%               | 2.24109589                |
| 342     | 754                    | 0.1643835616%   | 123.94521%               | 2.239452054               |
| 343     | 753                    | 0.1643835616%   | 123.78082%               | 2.237808219               |
| 344     | 752                    | 0.1643835616%   | 123.61644%               | 2.236164383               |
| 345     | 751                    | 0.1643835616%   | 123.45205%               | 2.234520548               |
| 346     | 750                    | 0.1643835616%   | 123.28767%               | 2.232876712               |
| 347     | 749                    | 0.1643835616%   | 123.12329%               | 2.231232876               |
| 348     | 748                    | 0.1643835616%   | 122.95890%               | 2.229589041               |
| 349     | 747                    | 0.1643835616%   | 122.79452%               | 2.227945205               |
| 350     | 746                    | 0.1643835616%   | 122.63014%               | 2.22630137                |
| 351     | 745                    | 0.1643835616%   | 122.46575%               | 2.224657534               |
| 352     | 744                    | 0.1643835616%   | 122.30137%               | 2.223013698               |
| 353     | 743                    | 0.1643835616%   | 122.13699%               | 2.221369863               |
| 354     | 742                    | 0.1643835616%   | 121.97260%               | 2.219726027               |
| 355     | 741                    | 0.1643835616%   | 121.80822%               | 2.218082191               |
| 356     | 740                    | 0.1643835616%   | 121.64384%               | 2.216438356               |
| 357     | 739                    | 0.1643835616%   | 121.47945%               | 2.21479452                |
| 358     | 738                    | 0.1643835616%   | 121.31507%               | 2.213150685               |
| 359     | 737                    | 0.1643835616%   | 121.15068%               | 2.211506849               |
| 360     | 736                    | 0.1643835616%   | 120.98630%               | 2.209863013               |
| 361     | 735                    | 0.1643835616%   | 120.82192%               | 2.208219178               |
| 362     | 734                    | 0.1643835616%   | 120.65753%               | 2.206575342               |
| 363     | 733                    | 0.1643835616%   | 120.49315%               | 2.204931507               |
| 364     | 732                    | 0.1643835616%   | 120.32877%               | 2.203287671               |
| 365     | 731                    | 0.1643835616%   | 120.16438%               | 2.201643835               |


# Claim Bonds

Once the zClay bond maturation date is reached, bondholders can claim their Clay rewards via the Bond page under the Claim tab.

### **How to claim zClay bond rewards**&#x20;

* In order to claim your zClay bond rewards, you must first navigate to the Bond page.

<figure><img src="/files/6R6k2ObC78bpVsOhSEAf" alt=""><figcaption></figcaption></figure>

* On the Bond page, select the Claim tab.

<figure><img src="/files/Ss0tJxudD94OpiQhw3Ew" alt=""><figcaption></figcaption></figure>

* Click 'Claim' and sign the corresponding transaction in your wallet.

<figure><img src="/files/Xu6bpt25kacbxYPvkac3" alt=""><figcaption></figcaption></figure>

* Once this transaction has been confirmed, both your original Clay bond amount and your Clay rewards will appear in your wallet.&#x20;

<figure><img src="/files/0xhfbYzbr3hRadeQIA2M" alt=""><figcaption></figcaption></figure>


# FAQ Sections

Frequently Asked Questions

{% content-ref url="/pages/CoNoTI6Mjsyn1qUIKOCx" %}
[About Sumero Protocol & Global Access Labs](/frequently-asked-questions/faq-sections/about-sumero-protocol-and-global-access-labs)
{% endcontent-ref %}

{% content-ref url="/pages/ASF39f9tVNcjSOYLanhQ" %}
[Trading ](/frequently-asked-questions/faq-sections/trading)
{% endcontent-ref %}

{% content-ref url="/pages/3sv08rnwmc75ujE4NP8b" %}
[Fees](/frequently-asked-questions/faq-sections/fees)
{% endcontent-ref %}

{% content-ref url="/pages/iVfw1n5I92ALGZeN8Jo4" %}
[Collateral](/frequently-asked-questions/faq-sections/collateral)
{% endcontent-ref %}

{% content-ref url="/pages/XK7A6fJLnW09xT74KGGS" %}
[Liquidity Provision](/frequently-asked-questions/faq-sections/liquidity-provision)
{% endcontent-ref %}

{% content-ref url="/pages/cgzhCerklcKXbVZDQJt6" %}
[Oracles](/frequently-asked-questions/faq-sections/oracles)
{% endcontent-ref %}

{% content-ref url="/pages/eGbpatY0XhfPNJnOgRc8" %}
[Clay](/frequently-asked-questions/faq-sections/clay)
{% endcontent-ref %}

{% content-ref url="/pages/T5tR1FAgI2qPf9L2CgEQ" %}
[zClay Bonds](/frequently-asked-questions/faq-sections/zclay-bonds)
{% endcontent-ref %}

{% content-ref url="/pages/0dXP58vn7B7mKKdn8wdT" %}
[cSynths (Synthetic Assets) ](/frequently-asked-questions/faq-sections/csynths-synthetic-assets)
{% endcontent-ref %}


# About Sumero Protocol & Global Access Labs

**Who is behind Sumero?**

Sumero is a decentralized protocol built on blockchain technology. The Sumero protocol was built and developed by Global Access Labs Ltd, a Web3 software development company domiciled in Dublin, Ireland.

**What is Global Access Labs (GAL)?**

Global Access Labs is the company which developed the Sumero protocol, along with the web interface for the protocol.

**What is the Sumero protocol?**

The Sumero protocol is a suite of persistent, non-upgradable smart contracts that together create an automated market maker (AMM), a protocol that facilitates minting synthetic assets, peer-to-peer market making and swapping of [ERC-20 tokens](https://ethereum.org/en/developers/docs/standards/tokens/erc-20/) on the Ethereum blockchain.

**What is the Sumero interface?**

The Sumero interface is a web interface that allows anyone to easily interact with the Sumero protocol. This web interface is only one of many ways one may interact with the underlying Sumero protocol.


# Trading&#x20;

**What is SumSwap?**

SumSwap is Sumero’s native decentralised exchange (DEX), accessible via Sumero’s decentralised application (Dapp).

**What is a decentralised exchange (DEX)?**

A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur between cryptocurrency buyers and sellers. DEXs allow for financial transactions to take place without passing through an intermediary such as a bank, broker, or any other form of financial intermediary. DEXs achieve this through the use of automated algorithms, comprised of smart contracts, that self-execute under set conditions and record each transaction to the blockchain.&#x20;

**What are the differences between SumSwap (DEX) and a centralised exchange (CEX) like Coinbase?**

Unlike centralized exchanges like Coinbase, SumSwap and other DEXs do not use an order book to handle transactions and determine the price of a crypto asset based on buy and sell orders. DEXs use liquidity pools, comprising different assets and asset ratios, to facilitate trades whilst rewarding liquidity providers with trading fees derived from trades facilitates by the liquidity pool. While transactions facilitated by a centralized exchange are recorded and stored on an internal centralised database, all transactions carried out on a DEX are settled and stored on the underlying blockchain. Finally, in contrast to centralized exchanges, DEXs are non-custodial, meaning that the user retains full control and ownership of their assets when transacting on a DEX like SumSwap.

**How do I interact with SumSwap and the Sumero Dapp?**

You can connect and interact with Sumero and Sumswap using a Web3 wallet, such as MetaMask, on your browser or your smartphone. If you are just getting started, we recommend using MetaMask as it provides a beginner-friendly user interface.

**Note:** When downloading a web3 wallet like MetaMask, make sure you are downloading from the official wallet website URL. Downloading malicious software from phishing websites posing as Web3 software websites is a common hacking vector and will typically result in loss of funds.

You will also need some Ether (ETH) to interact with any application built on the Ethereum blockchain in order to pay gas fees. Gas fees are essentially fees you pay to the Ethereum network in return for the computational resources needed to process and validate your transactions.

**How do SumSwap fees work?**

SumSwap charges a 0.3% trading fee that is distributed between liquidity providers based on their share of the pool that was used to facilitate the trade.

**Ethereum Transaction Fees (Gas Fees)**

Ethereum network or gas fees are the fees paid to validators in order to process and validate transactions on the blockchain. Sumero does not profit from these fees as they are paid directly to the network validators.


# Fees

Overview of Sumero Protocol Fees

#### Trading Fees

Trading fees are generated whenever a user trades assets using SumSwap. A 0.3% trading fee is applied across all liquidity pools that provide the liquidity to carry out a trade. This fee is used to compensate liquidity providers for depositing their assets on the platform.

#### Liquidation Fees

The liquidation penalty (or reward rate for liquidators) is paid out to liquidators by the EMP contract as an incentive to begin the process of liquidating open synth positions that meet the liquidation threshold. This liquidation fee/reward rate is provided by the Sumero protocol. An additional reward is sent to UMA's Optimistic Oracle when the expire() function is called at expiry of an EMP. The user calling the expire() function must provide this reward/fee. This user will almost always be a member of the Sumero protocol team as they will need to provide this reward/fee.

#### Gas Fees

Gas fees (transaction fees) are not set by the protocol. They are determined by the Ethereum blockchain and change based on network participant behaviour/network congestion.


# Collateral

#### What is collateral?

Collateral is a financial concept that means something you put up as a guarantee when borrowing money. If you can’t pay back your loan, your collateral will be used to pay your debt. An easy example is when you take a house loan from a bank, the house you bought will be the collateral; if you can’t pay back your loan, the bank will take your house.

It is exactly the same in DeFi; if you want to borrow or mint assets from the protocol, you will need to give the protocol some other assets as collateral. If you don’t pay back your loan or asset position, the protocol will not give you back your collateral.&#x20;


# Liquidity Provision

**What is liquidity mining?**

Liquidity mining is an incentive system that rewards liquidity providers with additional tokens in return for depositing their liquid assets into a liquidity pool.

**What is a liquidity pool?**

Liquidity pools are pools of crypto assets that a decentralised exchange uses to facilitate any buy or sell orders that appear. This automated market-making mechanism allows decentralised exchanges to replace centralized market makers with decentralised liquidity providers. Assets in these pools are provided by ‘liquidity providers’, who deposit their liquid assets in order to earn yield from transaction fees charged to users who place buy or sell orders for assets in the pool. This is similar to how market makers profit by providing liquidity to centralized exchanges. However, in this case, the yield is divided among all of the liquidity providers in proportion to the liquidity provided by each pool participant.

**Why does Sumero incentivise liquidity provision with additional Clay tokens?**

In order to incentivise sufficient liquidity Sumero offers an additional incentive, in the form of Clay tokens, to reward early users who stake their USDC-CLAY LP tokens using the Sumero protocol. For step-by-step instructions on how to acquire and stake USDC-CLAY LP tokens, please see the [Staking LP Tokens](https://app.gitbook.com/o/-MW51XU_Xc09gaDokQ3D/s/-MUsP4_4YsnVEyBaKfGx/~/changes/EKqDDT0ZDopp5BzvBA7k/using-sumero/staking/staking-lp-tokens) page.

**How are Clay rewards distributed?**

Clay rewards are distributed to users in proportion to both the amount of capital committed and the length of time it is committed.

**How can I earn Clay rewards?**

Sumero users can earn Clay rewards in two ways:

* Buy a cSynth and deposit it into a liquidity pool with USDC.
* Mint a cSynth by staking Ether (ETH) or USDC and deposit this cSynth in a liquidity pool with USDC.
* Buy Clay and stake it in the bonds contract.&#x20;


# Oracles

**What is an Oracle?**

Blockchain oracles are entities that connect [blockchains](https://blog.chain.link/what-is-a-blockchain-and-how-can-it-impact-the-world/) to external systems, thereby enabling [smart contracts](https://chain.link/education/smart-contracts) to execute based on inputs and outputs from the real world.&#x20;

Oracles provide a way for the decentralized Web3 ecosystem to access existing [data sources](https://blog.chain.link/understanding-how-data-and-apis-power-next-generation-economies/), legacy systems, and advanced computations. Decentralized oracle networks (DONs) enable the creation of [hybrid smart contracts](https://blog.chain.link/hybrid-smart-contracts-explained/), where on-chain code and off-chain infrastructure are combined to support advanced decentralized applications (dApps) that react to real-world events and interoperate with traditional systems.

For example, let’s assume Alice and Bob want to bet on the outcome of a sports match. Alice bets $20 on team A and Bob bets $20 on team B, with the $40 total held in escrow by a smart contract. When the game ends, how does the smart contract know whether to release the funds to Alice or Bob? The answer is it requires an oracle mechanism to fetch accurate match outcomes off-chain and deliver them to the blockchain in a secure and reliable manner.

**Why use a decentralised oracle instead of a centralized oracle?**

Blockchain oracle mechanisms using a centralized entity to deliver data to a smart contract introduce a single point of failure, defeating the entire purpose of a decentralized blockchain application. If the single oracle goes offline, then the smart contract will not have access to the data required for execution or will execute improperly based on stale data.\
‍\
Even worse, if the single oracle is corrupted, then the data being delivered on-chain may be highly incorrect and lead to smart contracts executing very wrong outcomes. This is commonly referred to as the “garbage in, garbage out” problem where bad inputs lead to bad outputs. Additionally, because blockchain transactions are automated and immutable, a smart contract outcome based on inaccurate[ data](https://blog.chain.link/the-importance-of-data-quality-for-defi/) cannot be reversed, meaning user funds can be permanently lost. Therefore, centralized oracles are a non-starter for smart contract applications.&#x20;

Genuinely overcoming the oracle problem necessitates decentralized oracles to prevent data manipulation, inaccuracy, and downtime. A Decentralized Oracle Network, or DON for short, combines multiple independent oracle node operators and reliable data sources to establish end-to-end decentralization.

**Why does Sumero need a decentralised oracle to function?**

In order to preserve all the benefits that cryptocurrency provides, Sumero needs a system that can input pricing data onto the blockchain without needing to rely on a trusted third party. To achieve this, Sumero would need to use a system that is based on an open non-cooperative bargaining game. Much like incentives are created for miners or validators to come to a consensus on the order of transactions on a blockchain, Sumero requires an incentive system that encourages people to come to a consensus on the correct price of an asset. Those that attempt to input incorrect prices face similar financial penalties to those that attempt to re-order transactions. Honest behaviour is rewarded and dishonest behaviour is punished. Consequently, decentralised oracle systems are an essential foundational technology in bringing derivatives of real-world assets to the blockchain.&#x20;


# Clay

**What is a Clay Token?**

Clay is Sumero’s native cryptocurrency.

**How will Clay be distributed?**

Clay will be distributed solely through Sumero's liquidity mining programmes.

**How much Clay will be distributed / What is Clay’s fully diluted supply?**

100m Clay will be distributed in total.&#x20;


# zClay Bonds

**What are zClay bonds?**

zClay bonds are [zero-coupon bonds](https://www.investopedia.com/terms/z/zero-couponbond.asp) given to users in exchange for staking Clay tokens acquired through mining or purchasing Clay.

**How do zClay bonds work?**

zClay bonds work exactly like zero-coupon bonds. Sumero users lend their Clay tokens to the Sumero protocol via the bond page and receive zClay bonds in return. Upon maturation, zClay bonds are redeemable for the original Clay bonds deposited plus the additional Clay tokens accrued over the duration of the bond period. As mentioned above, the difference between the purchase price of the zClay bonds and the value of the tokens redeemed at the end of the bonding period indicates the investor's return.

**What are zClay bonds denominated in?**

zClay bonds are denominated in Clay, Sumero’s native currency.

**How is the price of zClay bonds determined i.e. what price discovery mechanism is used by zClay bonds?**

Bonding curve theory, which allows for a fixed and predetermined price discovery mechanism, is applied in the context of zClay bonds to determine price at any given time. In theory, the closer a zClay bond gets to maturity, the more expensive it should become as the bond is closer to the bond maturity date at which the bond holder can use it to claim Clay. Those that buy zClay bonds earlier (further from the maturation date) take on more risk as the uncertainty of Clay’s price at the maturation date is greater. Thus, the more risk the user takes on, the lesser the price of a zClay bond will be to account for this additional risk. For example, if one were to purchase a zClay bond 3 days prior to maturation, the buyer in this case assumes much less risk and uncertainty with respect to Clay’s price at maturation, and consequently must pay a premium for that reduction in risk.

**Who sets the maturation date of zClay bonds?**

The maturation date of zClay bonds is set by the GAL.

**Do zClay bonds mature at the same point in time or in a segregated fashion?**

All zClay bonds reach maturity at the same point in time.

**How are zClay bond issuance rewards calculated?**

The bonds are issued at a 60% APY

**How are zClay bonds priced after issuance?**

If the market is efficient, prices of zClay denominated in Clay on the secondary market would be expected to be the same as the daily issuance price and continue to decline at the same rate shown [here](https://docs.sumero.finance/clay-bond-imputed-apy-by-day-of-purchase) once issuance has finished after 1 year. The price should reach almost 1:1 on the final day before maturation.


# cSynths (Synthetic Assets)&#x20;

**What are cSynths?**

Synthetic assets that are minted using the Sumero protocol are called cSynths. cSynths are tokenised derivatives contracts that can be minted and traded using the Sumero protocol.

**What is a synthetic asset?**

Synthetic assets are collatera&#x6C;**-**&#x62;acked tokens whose value fluctuates depending on the token's reference index. &#x20;

**What is an underlying asset?**

Underlying assets are the financial assets upon which a [derivative’s](https://www.investopedia.com/terms/d/derivative.asp) price is based.&#x20;


# Clay Token

Overview

### **What is Clay?**

Clay is Sumero's native cryptocurrency. Clay is an ERC-20 token. The source code for the CLAY token can be found on [GitHub here.](https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/ClayToken.sol)

### Deployed Contracts

#### Ethereum Mainnet

| Contracts                                                                                        | Address                                                                                                               |
| ------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------- |
| [CLAY Token](https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/ClayToken.sol) | [0xB441859e44F19754eE79AFA91b081620dDFE269f](https://etherscan.io/address/0xB441859e44F19754eE79AFA91b081620dDFE269f) |

#### Goerli Testnet

| Contracts                                                                                        | Address                                                                                                                      |
| ------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------- |
| [CLAY Token](https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/ClayToken.sol) | [0x199478425dBe9eD7f48A189bA1Ea68bD1c2061a2](https://goerli.etherscan.io/address/0x199478425dBe9eD7f48A189bA1Ea68bD1c2061a2) |

### **Clay Utility**

In its current format, the Clay has no utility. However, the Sumero V2 token will have utility as an oracle token and Clay is convertible to it. In other words, Clay can be redeemed for Sumero V2 tokens.

### **How to acquire Clay**

Sumero users can acquire clay in several ways including:

1. Staking USDC-CLAY pool LP tokens in Sumero's LP staking contract.
2. Lending Clay to the protocol in return for zClay bonds.
3. Buying Clay on SumSwap with USDC.


# Buying Clay

The easiest way to participate in the Sumero system is to simply buy CLAY. Although there is no central issuer of CLAY, many liquidity mining participants will need to sell some CLAY to meet expenses. There will almost certainly be CLAY available to purchase on SumSwap (Sumero’s native exchange).

### How to buy Clay on SumSwap

1. Connect your wallet to Sumero
2. Navigate to the Trade page
3. Select the buy tab
4. Click on the 'From' input field and enter the amount of USDC you want to trade for Clay. The Sumero protocol will automatically calculate the amount of Clay that you will receive based on the amount you have inputted.
5. Click approve and confirm the transaction in your wallet
6. Then click trade and confirm the transaction in your wallet.
7. Your Clay tokens will appear in your wallet once your transaction is executed.

{% hint style="info" %}
If you can't see your clay tokens in your wallet, make sure to add the token to your metamask wallet by clicking the 'i' symbol next to the Clay input field.&#x20;
{% endhint %}


# Selling Clay

If users wish to sell some of their Clay tokens, they can navigate to the Trade page on the Sumero protocol. Here they will find Sumero's SumSwap DEX which allows them to swap Clay for the USDC stablecoin.

### How to sell Clay on SumSwap

1. Connect your wallet to Sumero
2. Navigate to the Trade page
3. Select the sell tab
4. Select the Clay token from the toggle list of token options
5. Click on the 'From' input field and enter the amount of Clay you want to trade for USDC. The Sumero protocol will automatically calculate the amount of USDC that you will receive based on the amount of Clay you have inputted.
6. Click approve and confirm the transaction in your wallet
7. Then click trade and confirm the transaction in your wallet.
8. Your USDC tokens will appear in your wallet once your transaction is executed.


# Clay Issuance Schedule

### Allocation Breakdown

100m Clay will be issued in total via Sumero's liquidity mining programmes.&#x20;

#### Clay will be distributed as follows:

* 48m Clay distributed by liquidity mining. Liquidity mining rewards will be mined over 6 months with rewards halving every 2 months.
* 2m Clay will be distributed to Clay airdrop participants, the Sumero team & advisors.
* A theoretical maximum of 50m Clay will be issued via the 2-Year zClay Bond Pool.&#x20;

| Recipient                          | Allocation |
| ---------------------------------- | ---------- |
| Liquidity Miners                   | 48m        |
| zClay Bond Holders                 | 4m         |
| Sumero Team & Airdrop Participants | 20m        |
| **Total**                          | **77m**    |


# The Sumero Ecosystem

Protocol, Interface, Labs

To begin, we should make clear the distinctions between the different areas of "Sumero", some of which may confuse new users.

* **Global Access Labs**: The company which developed the Sumero protocol, along with the web interface.
* **The Sumero Protocol**: A suite of persistent, non-upgradable smart contracts that together create an automated market maker, a protocol that facilitates minting synthetic assets, peer-to-peer market making and swapping of ERC-20 tokens on the Ethereum blockchain.
* **The Sumero Interface**: A web interface that allows for easy interaction with the Sumero protocol. The interface is only one of many ways one may interact with the Sumero protocol.

## How does the Sumero protocol compare to a typical market?

To understand how the Sumero protocol differs from a traditional exchange, it is helpful to first look at two subjects: how the Automated Market Maker design deviates from traditional central limit order book-based exchanges, and how permissionless systems depart from conventional permissioned systems.

#### Order Book VS Automated Market Maker <a href="#order-book-vs-amm" id="order-book-vs-amm"></a>

Most publicly accessible markets use a central limit [order book](https://www.investopedia.com/terms/o/order-book.asp) style of exchange, where buyers and sellers create orders organized by price level that are progressively filled as demand shifts. Anyone who has traded stocks through brokerage firms will be familiar with an order book system.

The Sumero protocol takes a different approach, using an Automated Market Maker (AMM), sometimes referred to as a Constant Function Market Maker, in place of an order book.

At a very high level, an AMM replaces the buy and sell orders in an order book market with a liquidity pool of two assets, both valued relative to each other. As one asset is traded for the other, the relative prices of the two assets shift, and a new market rate for both is determined. In this dynamic, a buyer or seller trades directly with the pool, rather than with specific orders left by other parties. The advantages and disadvantages of Automated Market Makers versus their traditional order book counterparts are under active research by a growing number of parties.&#x20;

#### Permissionless Systems[​](https://docs.uniswap.org/concepts/uniswap-protocol#permissionless-systems) <a href="#permissionless-systems" id="permissionless-systems"></a>

The second departure from traditional markets is the permissionless and immutable design of the Sumero protocol. These design decisions were inspired by Ethereum's core tenets and our commitment to the ideals of permissionless access and immutability as indispensable components of a future in which anyone in the world can access financial services without fear of discrimination or counter-party risk.

Permissionless design means that the protocol's services are entirely open for public use, with no ability to selectively restrict who can or cannot use them. Anyone can mint synthetic assets, swap, provide liquidity, or create new markets at will. This is a departure from traditional financial services, which typically restrict access based on geography, wealth status, and age.

The protocol is also immutable, in other words not upgradeable. No party is able to pause the contracts, stop the minting of synthetic assets, reverse trade execution, or otherwise change the behaviour of the protocol in any way.&#x20;


# Technical Overview

How does the Sumero protocol work?

Sumero is a synthetic asset platform that allows anyone, anywhere, to mint and trade synthetic assets offered by the protocol. Sumero offers a variety of synthetic assets approved by the Sumero team.&#x20;

## **Feature List**

<table><thead><tr><th width="178">Features</th><th width="524">Description</th><th>Contracts</th></tr></thead><tbody><tr><td>Dashboard Page</td><td><p>Dashboard page displays CLAY and zCLAY balance. It shows you all the active synthetic positions on Sumero (i.e. approved and added to asset manager).<br><br>For ACTIVE synthetic positions you can:<br>- Deposit Collateral<br>- Withdraw Collateral<br>- Redeem synthetic tokens</p><p>- Repay synthetic tokens<br><br>For EXPIRED synthetic positions you can:<br>- See the warning about Price resolving<br>- See the option to Approve token and Settle once the price has resolved<br><br>For OTHER synthetics for which you don't have a position:<br>- If they are expired, you can see the details of EMP<br>- If they are active, you can see the details of EMP, and also MINT/TRADE them</p></td><td></td></tr><tr><td>Trade Page</td><td>Trade page allows the user to swap tokens using sumero's liquidity pools. This gives users the option to swap USDC for synthetic asset tokens.</td><td>UniswapV2Factory.sol (fork of Uniswap)<br>UniswapV2Router02.sol (fork of Uniswap)<br>USDC (already deployed)<br>ClayToken.sol (written &#x26; deployed by Sumero)</td></tr><tr><td>Mint Page</td><td>Mint page allows users to mint new synthetic tokens approved by sumero.</td><td>ExpiringMultiPartyCreator.sol (Deployed by Sumero)<br>ExpiringMultiParty.sol (deployed by Sumero)</td></tr><tr><td>Pool Page</td><td>Pool page allows users to participate in liquidity provision. Users can provide or withdraw liquidity for the<br>available pools in return for sumero LP tokens and pool fees.</td><td>UniswapV2Factory.sol (fork of Uniswap)<br>UniswapV2Router02.sol (fork of Uniswap)<br>USDC (already deployed)<br>ClayToken.sol (written &#x26; deployed by Sumero)</td></tr><tr><td>Bonds Page</td><td>Bond page allows users to lend Clay for an extended period of time and receive zCLAY bonds in return. Once the zClay bond maturation date is reached, users can redeem their zCLAY bonds for the accrued Clay rewards.</td><td>ClayBonds.sol (written &#x26; deployed by Sumero)</td></tr><tr><td>Stake Page</td><td>Stake page allows users to stake LP tokens and participate in the Clay staking rewards program.</td><td>ClayStakingRewards.sol (written &#x26; deployed by Sumero)</td></tr><tr><td>Asset Manager (Smart Contract)</td><td>Asset Manager contains approved contracts by Sumero. Approved EMPs, Trade Pools and Staking Pools.</td><td>AssetManager.sol (written &#x26; deployed by Sumero)</td></tr></tbody></table>


# Expiring Multi Party

What is an EMP contract?

Sumero uses UMA's Expiring Multi Party (EMP) Contracts to create Clay Synthetic Assets (cSynths). As UMA has deprecated these EMP contracts, Sumero has forked and created our own version of the EMP contracts which can be found [here](https://github.com/Signo-App/sumero-contracts/tree/develop/contracts/UMA).

The `ExpiringMultiParty` (“EMP”) contract is the main star of Sumero. It’s what enables us to create a synthetic out of virtually any publicly available statistic. In theory, this could be anything from CPI and some currency index, to something as wacky as “an asset whose price follows the number of free throws LeBron James makes in a month”.\
\
Every EMP contract represents a new type of synthetic asset, from which an unlimited amount of the synthetic token can be minted, given the sponsors supply enough collateral. Each EMP has an expiration date, where all sponsors and all holders of the synthetic token can “settle” for the underlying collateral.\
\
The UMA team wrote the original EMP contract but stopped maintaining it recently. Thus we’ve had to fork the code, and have made a variety of changes to suit our needs. For the purposes of this document, see the EMP code [here](https://github.com/Signo-App/sumero-contracts/tree/develop/contracts/UMA/financial-templates), which tracks the latest changes to the EMP code.<br>

### Main Terms

* **Sponsor:** An Ethereum agent that provides USDC as collateral to the EMP contract, in exchange for freshly minted synthetic tokens for the contract.
* **Liquidator:** An Ethereum agent that has started a liquidation claim on a sponsor’s position. This may be an attempt to liquidate the whole position or only a part of it.
* **Disputer:** An Ethereum agent that has disputed an active liquidation.
* **Optimistic Oracle:** UMA’s system for answering queries for different prices or numerical values.

### File Structure / Inheritance

`PricelessPositionManager` allows sponsors to put up collateral and mint a synthetic asset.\
\
`Liquidatable` inherits `PricelessPositionManager`, and allows anyone to create, dispute, and resolve liquidations for any EMP sponsor’s position.\
\
`ExpiringMultiParty` inherits `Liquidatable` without adding any functionality, and is created through the use of `ExpiringMultiParyCreator`.<br>

## PricelessPositionManager

This contract handles the logic relating to:

* Holding/managing collateral for sponsors, and allowing the minting of the synthetic asset
* Managing positions: withdrawing, adding/removing collateral, paying back the synthetic debt
* Upon expiration, allowing all sponsors and all synthetic asset holders to “settle” and receive underlying collateral from the contract.

A good way to think about this contract, in isolation from what inherits it, is that this contract would allow synthetic assets to be safely created **if we assume that all sponsors will keep their position solvent**, without needing any incentive to do so.<br>

## Liquidatable

This contract handles the logic of creating, disputing, and settling liquidations, and ultimately relies on UMA’s `OptimisticOracle` to settle any disputes. This introduces the incentives and game theory to give strong guarantees that the EMP as a whole remains solvent throughout its life.\
\
An Ethereum agent who holds some of the respective synthetic asset tokens can begin liquidating any position at any time, but they must also include a bond of the collateral currency. If it’s not disputed within a time limit, the system assumes the liquidation is legitimate and awards the liquidator: the synthetic asset provided is burned, and the underlying collateral is returned to the liquidator, which should be worth more than the synthetic asset, thus providing the incentive for the liquidator. The bond is also returned to the liquidator. This also punishes the sponsor. In this case, the OptimisticOracle is not even queried.\
\
However, any liquidation can also be disputed by any agent with enough collateral to put their own bond of collateral currency up. In this case, a price is requested from UMA’s OptimisticOracle, and the bond amount is sent with the request. UMA’s OptimisticOracle eventually returns a price (using the `priceIdentifier` and possibly `ancillaryData` set upon EMP creation to know how to calculate the value). The EMP logic uses this returned price to determine whether the liquidation was legitimate or not.\
\
If it was legitimate, the liquidator “wins” and gets an outcome similar to if the liquidation was never disputed, while the disputer loses his bond. If not, the liquidator loses his bond, and the disputer is the one who is rewarded.\
\
So: the game theory here relies on an “end game” dispute, which will in theory always reward the agent that was able to correctly identify whether a liquidation was necessary. This motivates liquidators to try to only liquidate at-risk positions, and disputers to watch liquidations for invalid liquidations where the position was not actually at risk. It also motivates sponsors to watch their positions and keep them over-collateralized, to avoid liquidation.<br>


# Priceless Position Manager

Below, the **GCR** (“Global Collateralization Ratio”) is the ratio between the total amount of synthetic tokens in debt versus the total amount of collateral held in the contract. Note that this is only a ratio between token *amounts*, not token value; for example, a synthetic BTC with 1 sBTC of total synthetic debt and 1 USDC of collateral is actually 1.0, regardless of the price of Bitcoin.

## State Variables

Note: we omit variables whose comments in Solidity do a good enough job of explaining their job.\
\
`contractState` is an enum with three possibilities:<br>

* `Open`: “normal” pre-expiry operation. Users can start liquidations only when the EMP is in this state. Will advance when `expire()` function is called after `expirationTimestamp` (or when `emergencyShutdown` is called).
* `ExpiredPriceRequested`: The contract’s `expire()` function has been successfully called and we are waiting for a returned OptimisticOracle price. Will advance when `settle()` is called if there is a resolved price available for the OptimisticOracle.
* `ExpiredPriceReceived`: The OptimisticOracle price has resolved and `settle()` has been called at least once.

Keep in mind that the widely used `_onlyPreExpiration` and `_onlyPostExpiration` modifiers don’t look at this state directly; instead, they look at whether `expirationTimestamp` has passed yet or not.\
\
`positions` is a mapping containing a `PositionData` struct, one for each sponsor (note that it’s not possible for one sponsor to have two positions). These `PositionData` structs track the sponsor’s `outstandingTokens` (how much in synthetic assets they owe to the position), their `collateral` (how much collateral is deposited), and information regarding withdrawal and transfer requests.\
\
`tokenCurrency` is the synthetic asset token address that was newly created upon EMP construction. This is the token in which debts are tallied, and all `tokenCurreny` “out in the wild” correspond to some sponsor’s position with collateral, which initially minted them.\
\
`priceIdentifier`: This identifies what price the synthetic asset should follow. `PriceIdentifier` must be one of the approved identifiers for the UMA system. As one example, the `ETHUSD` price feed is an approved feed that dictates specifically how this price must be calculated. A special case is the price identifier `NUMERICAL`, which relies on `ancillaryData` described.\
\
`ancillaryData`: Carries additional information that might be necessary to calculate the price specified by `priceIdentifier`. In the case of NUMERICAL, the ancillary data must pose a question that can be answered numerically. For more information, see [Creating a Novel Synthetic Asset (using the NUMERICAL identifier)](https://quip.com/XpQcA36SBxoe).\
\
`withdrawalLiveness`: If a withdrawal would lower the GCR, it can’t be done instantly and must go through a waiting period. This variable defines how long that waiting period is. See the Solidity comments for more info.\
\
`minSponsorTokens`: If a user wants to become a sponsor, they must create a position that mints at least this many synthetic tokens, and can never go below this amount (except for paying it back in totality, thus removing it). This must be set to avoid any given position being so small that a liquidator is not incentivized to liquidate it (due to gas costs making it prohibitive).

* It should be a considerable amount such that there is an incentive for the liquidator to liquidate it.
* It should be easily mintable by a potential sponsor, i.e. it should not be a huge value.
* The minSponsorTokens should make sense in collateral amount i.e. USDC. So the value should be, let’s say, worth 100 USDC or 10 USDC and so forth. It cannot be equal to 0.0001 USDC etc.

\
`expiryPrice`: Only set while when `contractState == ExpiredPriceResolved`. Stores the price the OptimisticOracle returned.\
\
`ooReward`: The amount of collateral that is sent to the OptimisticOracle as a reward to the proposer. This is also the bond that a liquidator or disputer must submit. During expiration, this cost is socialized to all sponsors to pay for the OptimisticOracle price request.\
\
`financialProductLibrary`: Always set to the zero address, and thus has no bearing on contract behaviour.

## External/Public State-Changing Functions

`requestTransferPosition`, `transferPositionPassedRequest`, and `cancelTransferPosition` all allow a sponsor to transfer his position to another address. The new address must not already hold a position. These methods use the `withdrawalLiveness` value as a delay.\
\
`depositTo` and its wrapper `deposit` simply transfer `collateralAmount` collateral from the specified address to its sponsor position. This can be used to raise the CR of the position that is at risk of becoming undercollateralized.\
\
Conversely, `withdraw` allows a user to withdraw collateral from his position. In contrast to the below functions, this is instant, but can only be done if it does not result in the position having a lower CR than the GCR.\
\
`requestWithdrawal`, `withdrawPassedRequest`, and `cancelWithdrawal` behave similarly to the transferPosition function. One difference however is that a liquidation started on this position may essentially reset the countdown of the withdrawal. See `Liquidatable`’s `createLiquidation` function, near the end.

\
`create` is where new synthetic tokens are born! The user deposits `collateralAmount` collateral and mints `numTokens`new synthetic tokens. He can set both of these parameters, but if this results in a sponsor position whose collateralization ratio is below the GCR, the call will fail. This ensures that new sponsors don’t ever move the total position closer to default. It will also fail if the position ends up with less than the `minSponsorTokens` amount.\
\
If successful, the user has a position with collateral in the collateral currency (usually USDC) and a **debt** of synthetic tokens (`position.tokensOutstanding`); he also has newly-minted synthetic tokens equal to this debt in his wallet, which he may send away or do whatever he wants with.\
\
`repay` burns `numTokens` synthetic asset tokens from the sponsor’s wallet, and reduces his position’s `tokensOutstanding`value by the amount burned (unless this would result in a value of less than `minSponsorTokens`, in which case the call reverts). Like `deposit`, this can be used to increase the CR of the position, but this time by repaying some of the debt of the position.\
\
`redeem` also burns `numTokens` synthetic asset tokens from the sponsor’s wallet and reduces `tokensOutstanding`, but instead of lowering its CR, collateral is returned from the position to the sponsor’s wallet. This will also revert if it results in a position’s `tokensOutstanding` going below `minSponsorTokens` - unless the `tokensOutstanding` goes to zero (meaning `numTokens == tokensOutstanding`), in which case all collateral is returned and the position is deleted.\
\
`expire` can be called by anyone, and can only be called if `contractState == Open` but the `expirationTimestamp` has passed. This function requests a price from the optimistic oracle, socializes the cost of the request to the sponsors, and sets `contractState` to `ExpiredPriceRequested`.\
\
`emergencyShutdown` does essentially the same thing as `expire`, but it must be called by the `governor` and can be called before `expirationTimestamp` has passed.\
\
`settleExpired` does a few different things. First, it checks that `expire` has already been called and that the oracle’s price has now resolved. If these checks pass, the following effects take place:

* If this is the first time the function has been successfully called, it will store the price from the OptimisticOracle and move the `contractState` to `ExpiredPriceReceived`.
* If the caller has any synthetic tokens in his wallet, these are burned and the caller is sent an equivalent amount of underlying collateral, according to the price. In other words, any synthetic tokens are “cashed out” for underlying collateral at market price.
* If the caller has a sponsor position (and thus a debt of `position.tokensOutstanding` synthetic tokens), this debt is converted into a collateral amount and subtracted from the position’s collateral. Any leftover collateral is sent to the user.

## Internal State-Changing Functions

`_reduceSponsorPosition` is not called within `PricelessPositionManager` code directly, instead only used in `Liquidatable` which inherits it. This function reduces a given sponsor’s position values for any of the passed variables for `tokensToRemove` (here meaning synthetic token debt), `collateralToRemove`, and `withdrawalAmountToRemove`, which removes collateral from any pending slow withdrawal. This function will revert if this operation results in a position having less than `minSponsorTokens` for `tokensOutstanding`, except in the case where `tokensOutstanding` and `rawCollateral` would reach zero, in which case the position is deleted.\
\
`_incrementCollateralBalances` and `_decrementCollateralBalances` simply add or subtract both from some local `memory` argument and the global tracker `totalPositionCollateral`, ensuring consistency between individual and global variables.\
\
`_decrementCollateralBalancesCheckGCR` does the same as the previous decrement function, but will revert if the resulting position CR is lower than the GCR.\
\
`_requestOraclePrice_senderPays` does the same thing as the previous function, but is used by the `Liquidatable.dispute` function and gets `ooReward` from `msg.sender`, rather than socializing the cost to sponsors. In other words, while the previous function charges “the EMP itself” (and all its sponsors) for the cost, this function expects `msg.sender` to pay.\
\
`_getOraclePrice` gets a price that has been resolved, after either of the two above functions have requested a price. If the price has not yet resolved the function will revert.\
\
Both `_transformPrice` and `_transformPriceIdentifier` simply return the price or identifier respectively, since `financialContractLibrary` is the zero address for the EMP.<br>


# Liquidatable&#x20;

{% hint style="info" %}
Note that the `ExpiringMultiParty` code simply inherits `Liquidatable` and adds no additional functionality. Therefore, these two names essentially describe the same thing. All of the code can be viewed in `Liquidatable`.
{% endhint %}

### How Liquidations Work

If a sponsor is holding a synthetic asset position that Alice believes is undercollateralized, she can start a liquidation for this position by calling `createLiquidation` (see below). A liquidation can target the entire position or just a part of it; this is determined by how much synthetic asset Alice transfers during the call (set by `maxTokensToLiquidate`). Alice must also include `ooReward` collateral to pay for the Optimistic Oracle’s price request in the case of a dispute (but she gets this back if there is no dispute or if the dispute is ruled in her favour).\
\
Note that as soon as a liquidation has begun in this way, the position is immediately reduced for the amount of the liquidation; even if it’s ultimately successfully disputed the position will be reduced (or removed); in that case, the holder of the position would be compensated with any excess collateral of the liquidated portion, as well as a reward that scales with the size of the liquidation based on `sponsorDisputeRewardPercentage` (see below).\
\
The liquidation stays open to disputes for a time period called `liquidationLiveness.` If no disputes come in during this time, the contract “optimistically” assumes Alice was correct. Alice would then receive a proportional amount of collateral from the position: if she had submitted 50% of the `position.tokensOutstanding` debt, she would receive 50% of the collateral in the position.\
\
As a natural consequence, the higher the `collateralRequirement` is, the more rewarded Alice is: if 1.5 (aka 150%), Alice would have essentially traded in the synthetic token for 150% of its value in the collateral token (this assumes the position was only barely undercollateralized). She could then of course trade this on the open market and return with more of the synthetic asset to perform more liquidations if there were still any liquidatable positions.\
\
Anyone who can pay the disputer bond and their own `ooReward` can dispute this liquidation, before `liquidationLiveness` has passed. Disputing triggers a price request for the asset from UMA’s OptimisticOracle, which uses `priceIdentifier` and `ancillaryData` to determine which asset to price and how to price it.\
\
`withdrawLiquidation` can be called either when `liquidationLiveness` has passed without any disputes, or once the OptimisticOracle has a price available for a dispute’s price request. This function settles a dispute if there is one by comparing the price to the position’s balances, and sends out rewards to various parties (disputer, liquidator, sponsor).

#### Interaction with “Slow Withdrawals”

The behaviour of liquidations and slow withdrawals (see `requestWithdrawal` from [2. PricelessPositionManager](https://quip.com/fy8KApzRxk6j)) interrelate in a few ways.

* Any slow withdrawal is also reduced by the same proportion the position was reduced by, as a result of starting the liquidation.
* Upon dispute, the position health is determined **after** taking into account any pending slow withdrawals, as if they have already gone through. Thus a position that is undergoing a slow withdrawal for most of its collateral is more likely to be ruled insolvent and punished. This allows liquidators to react to slow withdrawals which, unlike fast withdrawals, are not limited to the amount of collateral they can withdraw.
* Liquidations over the “griefing threshold” (currently arbitrarily set to `minSponsorPosition`) cause the countdown timer on withdrawals to reset. The purpose of this behaviour is to allow liquidators time to gather funds and liquidate chunks of a position that’s undergoing massive withdrawals while preventing small “troll” liquidations to be able to trigger this timer reset.

## State Variables

`liquidations` contains, for each sponsor address, an array of `LiquidationData` objects. When a liquidation is created, a `LiquidataionData` object is appended to the array of liquidations for that sponsor. These objects track the lifetime of a liquidation, through any possible dispute, and are zeroed out when the liquidation resolves one way or another. Some of these members are clear enough from the code/comments; here are some helpful comments for the rest:<br>

* `state` simply tracks the state in a `Status` enum. Any active liquidation will never actually be in the `Uninitialized`state.
* `liquidationTime` is the timestamp of when the liquidation started. This timestamp is also used when sending price requests to the optimistic oracle for any possible disputes. It’s the price “at this time” that is the subject of this liquidation.
* `tokensOutstanding` and `lockedCollateral` represent how much of the position is being liquidated, in terms of synthetic token debt and collateral, respectively.
* `lockedCollateralAfterWithdrawals`: The amount of collateral that would be locked in the liquidation if all pending slow withdrawals went through. The sole purpose of this variable is to be used during disputes: by considering the amount of collateral a position will have after withdrawals go through, liquidations can occur for positions that attempt to withdraw so much that their CR would go below `collateralRequirement`.
* `finalFee`: The liquidator and disputer must each include this as a bond. If there is no dispute, the liquidator gets this back. If there is a dispute, then the contract will have received `finalFee*2` in total. `finalFee` is sent along to the oracle as a reward, and `finalFee` whoever wins the dispute (liquidator or disputer) gets `finalFee` back.

`liquidationCollateral` stores the total amount of collateral **in all liquidations**; `liquidationCollateral + totalPositionCollateral` should always equal the sum of all actual collateral held in the EMP contract.<br>

#### Immutable (set at construction) Variables

`liquidationLiveness` is the minimum amount of time a liquidation stays open for dispute. If no dispute occurs before this time, the liquidator can withdraw the liquidation, and no call to the optimistic oracle is made.\
\
`collateralRequirement` is the ratio of collateralization under which a position can be legitimately liquidated. In contrast to the GCR described in [PricelessPositionManager](https://app.gitbook.com/o/-MW51XU_Xc09gaDokQ3D/s/-MUsP4_4YsnVEyBaKfGx/~/changes/EKqDDT0ZDopp5BzvBA7k/protocol-overview/the-sumero-protocol/priceless-position-manager), this ratio is ultimately calculated with the worth of the synthetic token debt versus the collateral held (during a dispute, when the price is available). If this value is set to 1.25, this means that any position that has less than 125% of the debt value deposited as collateral, can be legitimately liquidated by liquidators.\
\
The next three variables are all expressed as a `FixedPoint` decimal, where i.e. 0.1 indicates 10%.\
\
`disputeBondPercentage` determines the amount the disputer has to put up as a bond, as a percentage of the liquidations `lockedCollateral`. Note that this is not the only fee the disputer has to pay; see `finalFee` above in the `LiquidationData` struct.\
\
`sponsorDisputeRewardPercentage`: In the case of a successful dispute, this is the reward paid to the sponsor (whose position has just been liquidated), expressed as a percentage of the amount that was under liquidation.\
\
`disputerDisputeRewardPercentage`: In the case of a successful dispute, this is the reward paid to the disputer, expressed as a percentage of the amount that was under liquidation.<br>

## External/Public State-Changing Functions

`createLiquidation` starts a liquidation claim on any sponsor’s position. The sender must provide some amount of the synthetic asset (`maxTokensToLiquidate`) as well as `ooReward` collateral as a bond that will get refunded except in the case of a successful dispute. The next two arguments, `minCollateralPerToken` and `maxCollateralPerToken` dictate a max and min value for the ratio of collateral the liquidator expects to get back, for each of the synthetic tokens provided (specified in `FixedPoint` decimals; i.e. 10^18 = 1.0). The last argument specifies a deadline after which the transaction will fail. All of these last three arguments are guards built for the convenience of the caller, to dictate under which terms he is willing to initiate the liquidation.\
\
`dispute` can be called on any open liquidation. The caller must supply collateral equal to `(disputeBondPercentage * position.lockedCollateral) + ooReward`, both of which are returned (plus a reward) upon a successful dispute. This function requests a price from the OptimisticOracle.\
\
`withdrawLiquidation` can be called for a liquidation if either:&#x20;

1. No dispute has occurred for the liquidation and the `liquidationLiveness` period has passed.
2. If a dispute has occurred, and the OptimisticOracle has a price ready in response to the request made when `dispute` was called.&#x20;

This function calls `_settle` (see below) to settle a dispute if there is one. It then rewards the three parties accordingly to the outcome of any dispute.\
\
`_settle` is called in `withdrawLiquidation` to settle any active dispute for a given liquidation, using the OptimisticOracle’s returned price. If the oracle has no price available, the function reverts. Otherwise, it fetches the price and stores it in `liquidation.settlementPrice`, calculates `requiredCollateral` by multiplying the price by the `liquidation.tokensOutstanding` debt, and checks to see if `liquidation.lockedCollateralAfterWithdrawals` meets this obligation.<br>


# Optimistic Oracle

{% hint style="info" %}
Unfamiliar with the concept of an oracle? Check out the Ethereum Foundation's [oracle overview](https://ethereum.org/en/developers/docs/oracles/) first.
{% endhint %}

Sumero uses UMA's optimistic oracle and dispute arbitration system (DVM) to securely allow for arbitrary types of data to be brought on-chain. Sumero's EMPs expire at pre-determined times. At expiry, each EMP must receive the price of the underlying asset that has expired at the requested timestamp. Sumero's EMPs use UMA’s Optimistic Oracle (OO) to deterministically get this price. More information on UMA's Optimistic Oracle can be found via the following links:

&#x31;**.** [UMA's Optimistic Oracle](https://umaproject.org/products/optimistic-oracle)

2\. [Optimistic Oracle Docs](https://docs-dot-uma-protocol.appspot.com/uma/contracts/OptimisticOracle.html)

{% hint style="info" %}
Sumero EMPs cannot accept negative values.
{% endhint %}

### **EMP Expiry**

1. After EMP expiry, anyone can call the `expiry()` function to trigger a request to the Optimistic Oracle (OO). They can then view it on UMA's OO user interface [here](https://oracle.umaproject.org/).
2. UMA token holders would then propose a value (i.e. a price) in return for an economic incentive (this is the `ooReward` value when creating an EMP)
3. If there is no dispute, then the proposed price is resolved, and EMPs get a settlement price. Synthetic token holders and Synthetic token sponsors can then get back their collateral currency depending on the number of synthetic tokens they hold and the price at expiry.
4. If there is a dispute, a request will be made to UMA's Optimistic Oracle for a price. In a rare case, where the request for this price to the Optimistic Oracle is disputed, it will then go to the UMA's DVM where UMA token holders will vote on whether the dispute is valid or not.
   * If the dispute is valid, the price is resolved within 48-96 hours. To learn more about this process, please [see this page](https://docs.umaproject.org/protocol-overview/how-does-umas-oracle-work).
   * If the dispute is invalid, the original price will remain as the EMP settlement price.&#x20;

### UMA's **Optimistic Oracle**&#x20;

* For more information on UMA's optimistic oracle parameters, please see this section of [the UMA docs](https://docs.umaproject.org/developers/setting-custom-bond-and-liveness-parameters) which explains the parameters in depth.&#x20;
* For more information on how UMA's optimistic oracle works under the hood, please see this section of[ the UMA docs](https://docs.umaproject.org/protocol-overview/how-does-umas-oracle-work) which outlines the inner workings of the oracle.


# Fees

Sumero Protocol Fees

### Overview <a href="#swap-fees" id="swap-fees"></a>

Sumero collects fees in order to support a healthy decentralized ecosystem. For example, Liquidity Providers collect trading fees as users trade with SumSwap pools; this acts as an incentive for them to continue providing liquidity, which is required to facilitate trades. [​](https://docs.uniswap.org/concepts/protocol/fees#finding-the-right-pool-fee)

### Trading Fees[​](https://docs.uniswap.org/concepts/protocol/fees#swap-fees) <a href="#swap-fees" id="swap-fees"></a>

SumSwap traders pay swap fees when they trade with a pool. For SumSwap pools, fees are set by the protocol at 0.3%.&#x20;

The fees ultimately go to liquidity providers in exchange for them putting their tokens in the pool to facilitate trades. Trade fees are distributed pro-rata to all liquidity providers at the time of the trade. Trade fees are collected at the time of a swap, and they go directly into the pool, growing the pool's balance. For a trade with a given $$inputToken$$ and $$outputToken$$, the amount collected by the pool as a fee is $$Amount\_{fee} = Amount\_{inputToken} \* swapFee$$. As the pool collects fees, Sumero **pool token holders automatically accrue fees** relative to their **share of the pool** which is represented by their pool token balanc&#x65;**.**&#x20;

#### Example <a href="#example" id="example"></a>

Let's say Alice, Bob, Chuck, and Diana all provide liquidity in the same pool starting out with a total value of $100. After some time, the pool has collected many trade fees and is now worth $200. The pool itself grows while the Liquidity Providers' proportional shares stay the same.

| Person | Proportional Share | Initial Value | Value After Trading |
| ------ | ------------------ | ------------- | ------------------- |
| Alice  | 50.0%              | $50           | $100                |
| Bob    | 25.0%              | $25           | $50                 |
| Chuck  | 12.5%              | $12.50        | $25                 |
| Diana  | 12.5%              | $12.50        | $25                 |

<figure><img src="/files/SRv5R7G2kOF8JQxw3EbB" alt=""><figcaption></figcaption></figure>

### Liquidation Fees

<mark style="background-color:orange;">The liquidation penalty (or reward rate for liquidators) is paid out to liquidators as an incentive to begin the process of liquidating open synth positions that meet the liquidation threshold. The liquidation fee/reward rate for each synthetic asset is set by the protocol.</mark>

### Gas Fees <a href="#finding-the-right-pool-fee" id="finding-the-right-pool-fee"></a>

{% hint style="info" %}
Gas fees are not set by Sumero. Gas fees are determined by the Ethereum blockchain and fluctuate based on network participant behaviour. Wallet providers will automatically set a recommended transaction fee (base fee + recommended priority fee) to reduce the amount of complexity burdened onto their users.
{% endhint %}

Gas is essential to the Ethereum network. It is the fuel that allows it to operate in the same way that a car needs gasoline to run.

Gas refers to the unit that measures the amount of computational effort required to execute specific operations on the Ethereum network.

Since each Ethereum transaction requires computational resources to execute, each transaction requires a fee. Gas refers to the fee required to conduct a transaction on Ethereum successfully.

Gas fees are paid in Ethereum's native currency, ether (ETH). Gas prices are denoted in gwei, which itself is a denomination of ETH - each gwei is equal to 0.000000001 ETH (10-9 ETH). For example, instead of saying that your gas costs 0.000000001 ether, you can say your gas costs 1 gwei. The word 'gwei' itself means 'giga-wei', and it is equal to 1,000,000,000 wei. Wei itself (named after [Wei Dai](https://wikipedia.org/wiki/Wei_Dai), creator of [b-money](https://www.investopedia.com/terms/b/bmoney.asp)) is the smallest unit of ETH. For more information on Ethereum's gas fees, please see the [Ethereum Docs.](https://ethereum.org/en/developers/docs/gas/)

<br>


# Addresses

List of all the smart contracts that comprise the Sumero protocol.

### GitHub Repository

Sumero [Smart Contract Repository](https://github.com/Signo-App/sumero-contracts)&#x20;

### **Ethereum Mainnet Deployment**

<table><thead><tr><th width="387">Name</th><th width="216.33333333333331">Source</th><th width="295">Deployed Address</th><th width="308.6666666666667">Deployment Transaction</th></tr></thead><tbody><tr><td>Gnosis Safe Deployment Wallet</td><td><a href="https://github.com/safe-global/safe-contracts/blob/main/contracts/Safe.sol">Safe.sol</a></td><td><a href="https://etherscan.io/address/0xf05C8984A9F9cc5d3981d852331895220D09CDC8">https://etherscan.io/address/0xf05C8984A9F9cc5d3981d852331895220D09CDC8</a></td><td><a href="https://etherscan.io/tx/0xd38a21e1cf4968a7bbfc451215cae1de133db7e010210747348f3acc56aa9c5a">https://etherscan.io/tx/0xd38a21e1cf4968a7bbfc451215cae1de133db7e010210747348f3acc56aa9c5a</a></td></tr><tr><td>Expiring Multi Party Creator</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/UMA/financial-templates/expiring-multiparty/ExpiringMultiPartyCreator.sol">ExpiringMultiPartyCreator.sol</a></td><td><a href="https://etherscan.io/address/0xde437CB31Fc536D030038905298384A656FA5461">https://etherscan.io/address/0xde437CB31Fc536D030038905298384A656FA5461</a></td><td><a href="https://etherscan.io/tx/0x7a19544546668d22df73e1428e84c0d49498e68903f22c6693909c39188de42e">https://etherscan.io/tx/0x7a19544546668d22df73e1428e84c0d49498e68903f22c6693909c39188de42e</a></td></tr><tr><td>ExpiringMultiParty - cVT</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/UMA/financial-templates/expiring-multiparty/ExpiringMultiParty.sol">ExpiringMultiParty.sol</a></td><td><a href="https://etherscan.io/address/0x567c09b55294998d7a6f2a3a948e8fd331531b88">https://etherscan.io/address/0x567c09b55294998d7a6f2a3a948e8fd331531b88</a></td><td><a href="https://etherscan.io/tx/0xd59f1a0080ba74d61f8bd1176dbac3dfd4b248b5428c9819a293ebb0c3b85759">https://etherscan.io/tx/0xd59f1a0080ba74d61f8bd1176dbac3dfd4b248b5428c9819a293ebb0c3b85759</a></td></tr><tr><td>ExpiringMultiParty - cUSCPI</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/UMA/financial-templates/expiring-multiparty/ExpiringMultiParty.sol">ExpiringMultiParty.sol</a></td><td><a href="https://etherscan.io/address/0x2e58121bc57a57c0e80aa8bbaccb07f7e3c1e424">https://etherscan.io/address/0x2e58121bc57a57c0e80aa8bbaccb07f7e3c1e424</a></td><td><a href="https://etherscan.io/tx/0x976d409ae84e64ad2c3b226e63ab154df6c29a9fd01e80fa3df2eac06c49af18">https://etherscan.io/tx/0x976d409ae84e64ad2c3b226e63ab154df6c29a9fd01e80fa3df2eac06c49af18</a></td></tr><tr><td>ExpiringMultiParty - cNLHPI</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/UMA/financial-templates/expiring-multiparty/ExpiringMultiParty.sol">ExpiringMultiParty.sol</a></td><td><a href="https://etherscan.io/address/0x514c8e4abb26d1a172ccf7aee5cdc0839d8c2803">https://etherscan.io/address/0x514c8e4abb26d1a172ccf7aee5cdc0839d8c2803</a></td><td><a href="https://etherscan.io/tx/0xcbdc8f7c2f6cf634ed69b72435714696fc5d2731a56f302fa179f26baa101784">https://etherscan.io/tx/0xcbdc8f7c2f6cf634ed69b72435714696fc5d2731a56f302fa179f26baa101784</a></td></tr><tr><td>Clay Token</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/ClayToken.sol">ClayToken.sol</a></td><td><a href="https://etherscan.io/address/0xB441859e44F19754eE79AFA91b081620dDFE269f">https://etherscan.io/address/0xB441859e44F19754eE79AFA91b081620dDFE269f</a></td><td><a href="https://etherscan.io/tx/0x21e4beabae752dfcf2a66d1eb4360e4f886b1465ba4883062ccec1676bf7c54e">https://etherscan.io/tx/0x21e4beabae752dfcf2a66d1eb4360e4f886b1465ba4883062ccec1676bf7c54e</a></td></tr><tr><td>Asset Manager</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/AssetManager.sol">AssetManager.sol</a></td><td><a href="https://etherscan.io/address/0x7Acab2c04ea30BAc01874b9675BE9DAAcBa35863">https://etherscan.io/address/0x7Acab2c04ea30BAc01874b9675BE9DAAcBa35863</a></td><td><a href="https://etherscan.io/tx/0xfddad934787a98cf32a78c1874b58854b2eab05df61495fa31d82db1fe4016dc">https://etherscan.io/tx/0xfddad934787a98cf32a78c1874b58854b2eab05df61495fa31d82db1fe4016dc</a></td></tr><tr><td>ClayStakingRewards - cVT-USDC LP Pair</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/ClayStakingRewards.sol">ClayStakingRewards.sol</a></td><td><a href="https://etherscan.io/address/0xfD4D0DA10C93DD2C99fC12673604D67A346be906">https://etherscan.io/address/0xfD4D0DA10C93DD2C99fC12673604D67A346be906</a></td><td><a href="https://etherscan.io/tx/0x97a5883e49916202f33b5867623126b30e4a7f575e1bb20f3407992677b27d48">https://etherscan.io/tx/0x97a5883e49916202f33b5867623126b30e4a7f575e1bb20f3407992677b27d48</a></td></tr><tr><td>ClayStakingRewards - cUSCPI-USDC LP Pair</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/ClayStakingRewards.sol">ClayStakingRewards.sol</a></td><td><a href="https://etherscan.io/address/0x085c4e9E09E030FEFE9e620fE4d37ae2b273C951">https://etherscan.io/address/0x085c4e9E09E030FEFE9e620fE4d37ae2b273C951</a></td><td><a href="https://etherscan.io/tx/0x758b98f8365e5f0c8fdec94533c12771c2fefd53e2ab12b4fea707c13138d3f1">https://etherscan.io/tx/0x758b98f8365e5f0c8fdec94533c12771c2fefd53e2ab12b4fea707c13138d3f1</a></td></tr><tr><td>ClayStakingRewards - cNLHPI-USDC LP Pair</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/ClayStakingRewards.sol">ClayStakingRewards.sol</a></td><td><a href="https://etherscan.io/address/0x630ED9a2BABfC7Fa5445A5131aD4a56ee5c4FC12">https://etherscan.io/address/0x630ED9a2BABfC7Fa5445A5131aD4a56ee5c4FC12</a></td><td><a href="https://etherscan.io/tx/0xee25e968b96f32deef4cdd2228e7787b6ab967df0e7338b1adc092d288b746bc">https://etherscan.io/tx/0xee25e968b96f32deef4cdd2228e7787b6ab967df0e7338b1adc092d288b746bc</a></td></tr><tr><td>cVT_USDC Sumero LP Token (SLP)</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/uniswapV2/UniswapV2ERC20.sol">UniswapV2ERC20.sol</a></td><td><a href="https://etherscan.io/address/0x42613121853FA703c2046FD677f3c7E9325E19C0">https://etherscan.io/address/0x42613121853FA703c2046FD677f3c7E9325E19C0</a></td><td><a href="https://etherscan.io/tx/0x390a293421dc4c60df0691d802a64fce8ee7b21700a8ddd9e671d322625b626e">https://etherscan.io/tx/0x390a293421dc4c60df0691d802a64fce8ee7b21700a8ddd9e671d322625b626e</a></td></tr><tr><td>cUSCPI_USDC Sumero LP Token (SLP)</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/uniswapV2/UniswapV2ERC20.sol">UniswapV2ERC20.sol</a></td><td><a href="https://etherscan.io/address/0xD5930F65496C78F33BE68ff5C0A8C0998218416E">https://etherscan.io/address/0xD5930F65496C78F33BE68ff5C0A8C0998218416E</a></td><td><a href="https://etherscan.io/tx/0x5ef647493764d31360ccbe0e80777bdd1ec24594619f88f6ee5f634a183c83fc">https://etherscan.io/tx/0x5ef647493764d31360ccbe0e80777bdd1ec24594619f88f6ee5f634a183c83fc</a></td></tr><tr><td>cNLHPI_USDC Sumero LP Token (SLP)</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/uniswapV2/UniswapV2ERC20.sol">UniswapV2ERC20.sol</a></td><td><a href="https://etherscan.io/address/0xd009223796E03F88D6fe6B35404E807179A09238">https://etherscan.io/address/0xd009223796E03F88D6fe6B35404E807179A09238</a></td><td><a href="https://etherscan.io/tx/0x8f7919b60f34598a4ff34dfe7826381a5a3e63e9e64bb804f8628a3039528f64">https://etherscan.io/tx/0x8f7919b60f34598a4ff34dfe7826381a5a3e63e9e64bb804f8628a3039528f64</a></td></tr><tr><td>CLAY_USDC Sumero LP Token (SLP)</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/uniswapV2/UniswapV2ERC20.sol">UniswapV2ERC20.sol</a></td><td><a href="https://etherscan.io/address/0x28d054bdCa9B5c124eED23F65569F8677733138c">https://etherscan.io/address/0x28d054bdCa9B5c124eED23F65569F8677733138c</a></td><td><a href="https://etherscan.io/tx/0xf0891232ecadda76eb3294bbb90ce44928e6d3e2495cccc9ddd816ccfd9e2e1c">https://etherscan.io/tx/0xf0891232ecadda76eb3294bbb90ce44928e6d3e2495cccc9ddd816ccfd9e2e1c</a></td></tr><tr><td>Clay Distributor</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/ClayDistributor.sol">ClayDistributor.sol</a></td><td></td><td></td></tr><tr><td>Clay Bonds</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/ClayBonds.sol">ClayBonds.sol</a></td><td><a href="https://etherscan.io/address/0xD36449269DcC99b8aB352325C701CEb41f8bfDFe">https://etherscan.io/address/0xD36449269DcC99b8aB352325C701CEb41f8bfDFe</a></td><td><a href="https://etherscan.io/tx/0x9f67632b757a7f8a5ea270277d2c70d425d709764620ba314ec654f94386435d">https://etherscan.io/tx/0x9f67632b757a7f8a5ea270277d2c70d425d709764620ba314ec654f94386435d</a></td></tr><tr><td>Expiring Multi Party Lib</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/UMA/financial-templates/expiring-multiparty/ExpiringMultiPartyLib.sol">ExpiringMultiPartyLib.sol</a></td><td><a href="https://etherscan.io/address/0x11E47895BF8B4828444f5033B506Ca4d483AA939">https://etherscan.io/address/0x11E47895BF8B4828444f5033B506Ca4d483AA939</a></td><td><a href="https://etherscan.io/tx/0x64467702a88fce3c376b0a7d9dc61aa3c3f69f969719421932091894b1a17845">https://etherscan.io/tx/0x64467702a88fce3c376b0a7d9dc61aa3c3f69f969719421932091894b1a17845</a></td></tr><tr><td>Token Factory</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/UMA/financial-templates/common/TokenFactory.sol">TokenFactory.sol</a></td><td><a href="https://etherscan.io/address/0xD5c2777d580E454a77a9Cef3328a5871E4D280eB">https://etherscan.io/address/0xD5c2777d580E454a77a9Cef3328a5871E4D280eB</a></td><td><a href="https://etherscan.io/tx/0x92ef03422fc01525cb503f0c71cada0276f0f2eac952c9171c40936f3a2bea23">https://etherscan.io/tx/0x92ef03422fc01525cb503f0c71cada0276f0f2eac952c9171c40936f3a2bea23</a></td></tr><tr><td>Finder</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/UMA/oracle/implementation/Finder.sol">Finder.sol</a></td><td><a href="https://etherscan.io/address/0x40f941E48A552bF496B154Af6bf55725f18D77c3">https://etherscan.io/address/0x40f941E48A552bF496B154Af6bf55725f18D77c3</a></td><td><a href="https://etherscan.io/tx/0xe3dfdd6372514e1ed4395aff53ae8899b37184241bd31a0c6fd53673b09fa512">https://etherscan.io/tx/0xe3dfdd6372514e1ed4395aff53ae8899b37184241bd31a0c6fd53673b09fa512</a></td></tr><tr><td>Uniswap V2 Factory</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/uniswapV2/UniswapV2Factory.sol">UniswapV2Factory.sol</a></td><td><a href="https://etherscan.io/address/0xf98dE75c2Bc1a469C99bC33a91E1fCF8bF5D0788">https://etherscan.io/address/0xf98dE75c2Bc1a469C99bC33a91E1fCF8bF5D0788</a></td><td><a href="https://etherscan.io/tx/0xa7006676b85790ae8a6c9e85c72294eef247b2a648b0efacecd61a8d962568b3">https://etherscan.io/tx/0xa7006676b85790ae8a6c9e85c72294eef247b2a648b0efacecd61a8d962568b3</a></td></tr><tr><td>Uniswap V2 Router </td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/uniswapV2/UniswapV2Router02.sol">UniswapV2Router02.sol</a></td><td><a href="https://etherscan.io/address/0x86d7beb06908a2898ffcb535fE9c794Be2d98240">https://etherscan.io/address/0x86d7beb06908a2898ffcb535fE9c794Be2d98240</a></td><td><a href="https://etherscan.io/tx/0xf590577fee1d661a4761cddf90568b723b3bf79e74d1bb0ff03d9fab2841e1c1">https://etherscan.io/tx/0xf590577fee1d661a4761cddf90568b723b3bf79e74d1bb0ff03d9fab2841e1c1</a></td></tr></tbody></table>

### **Goerli Testnet Deployment**

<table><thead><tr><th width="387">Name</th><th width="216.33333333333331">Source</th><th width="295">Deployed Address</th><th width="308.6666666666667">Deployment Transaction</th></tr></thead><tbody><tr><td>Gnosis Safe Deployment Wallet</td><td><a href="https://github.com/safe-global/safe-contracts/blob/main/contracts/Safe.sol">Safe.sol</a></td><td><a href="https://goerli.etherscan.io/address/0xe222096794Fb4d6F7c0b7825Dd83c5bb9285a763">https://goerli.etherscan.io/address/0xe222096794Fb4d6F7c0b7825Dd83c5bb9285a763</a></td><td><a href="https://goerli.etherscan.io/tx/0x1b2610032c423e07bffedbc3fcac1ff59af09ef87dda9bd6cef881a58732b008">https://goerli.etherscan.io/tx/0x1b2610032c423e07bffedbc3fcac1ff59af09ef87dda9bd6cef881a58732b008</a></td></tr><tr><td>Expiring Multi Party Creator</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/UMA/financial-templates/expiring-multiparty/ExpiringMultiPartyCreator.sol">ExpiringMultiPartyCreator.sol</a></td><td><a href="https://goerli.etherscan.io/address/0x5eCbF93aD93Cc6dAb11E5b6b63b3Af93Bc587210">https://goerli.etherscan.io/address/0x5eCbF93aD93Cc6dAb11E5b6b63b3Af93Bc587210</a></td><td><a href="https://goerli.etherscan.io/tx/0x9e2ad7fe8116f09b7f7438b9de6cd33683480ae72662581595dcfc0e6fd20026">https://goerli.etherscan.io/tx/0x9e2ad7fe8116f09b7f7438b9de6cd33683480ae72662581595dcfc0e6fd20026</a></td></tr><tr><td>ExpiringMultiParty - cVT</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/UMA/financial-templates/expiring-multiparty/ExpiringMultiParty.sol">ExpiringMultiParty.sol</a></td><td><a href="https://goerli.etherscan.io/address/0x4d34c381e58fd4c96dbd84f0709882d6d5e3cdf7">https://goerli.etherscan.io/address/0x4d34c381e58fd4c96dbd84f0709882d6d5e3cdf7</a></td><td><a href="https://goerli.etherscan.io/tx/0xb1bdd289c33cb083397fc64638d0c5fc9e894382385eaed1eeb4dd7bd6c01d8d">https://goerli.etherscan.io/tx/0xb1bdd289c33cb083397fc64638d0c5fc9e894382385eaed1eeb4dd7bd6c01d8d</a></td></tr><tr><td>Clay Token</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/ClayToken.sol">ClayToken.sol</a></td><td><a href="https://goerli.etherscan.io/address/0x199478425dBe9eD7f48A189bA1Ea68bD1c2061a2#readContract">https://goerli.etherscan.io/address/0x199478425dBe9eD7f48A189bA1Ea68bD1c2061a2#readContract</a></td><td><a href="https://goerli.etherscan.io/tx/0x30438a0ba08ed62bbf4abef374428fceb146d09f43dbbd2887d4ea0fe33bda66">https://goerli.etherscan.io/tx/0x30438a0ba08ed62bbf4abef374428fceb146d09f43dbbd2887d4ea0fe33bda66</a></td></tr><tr><td>Asset Manager</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/AssetManager.sol">AssetManager.sol</a></td><td><a href="https://goerli.etherscan.io/address/0x55FDbe9Ad3E57473c8DE791E8485f61EF3127538">https://goerli.etherscan.io/address/0x55FDbe9Ad3E57473c8DE791E8485f61EF3127538</a></td><td><a href="https://goerli.etherscan.io/tx/0xa061a87971c5f51d739d230cc5ca4254e5b82dbf4c3af657f42b94f93ec19933">https://goerli.etherscan.io/tx/0xa061a87971c5f51d739d230cc5ca4254e5b82dbf4c3af657f42b94f93ec19933</a></td></tr><tr><td>ClayStakingRewards - cVT-USDC LP Pair</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/ClayStakingRewards.sol">ClayStakingRewards.sol</a></td><td><a href="https://goerli.etherscan.io/address/0xaA6Fd345A2f2C3d4E88Aa960Af4DE7615ea41DF5">https://goerli.etherscan.io/address/0xaA6Fd345A2f2C3d4E88Aa960Af4DE7615ea41DF5</a></td><td><a href="https://goerli.etherscan.io/tx/0x3aebc2575170739e2b07b08f878658186c040a596902d42a4fb471367060c496">https://goerli.etherscan.io/tx/0x3aebc2575170739e2b07b08f878658186c040a596902d42a4fb471367060c496</a></td></tr><tr><td>cVT_USDC Sumero LP Token (SLP)</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/uniswapV2/UniswapV2ERC20.sol">UniswapV2ERC20.sol</a></td><td><a href="https://goerli.etherscan.io/address/0x8556Fa1107401dAD95D67B1a9bbF49d87Fa18b4c">https://goerli.etherscan.io/address/0x8556Fa1107401dAD95D67B1a9bbF49d87Fa18b4c</a></td><td><a href="https://goerli.etherscan.io/tx/0x4ccde79ced3c2f738cad5dd2223d377cd0337d111565b8f5b921565970234bd2">https://goerli.etherscan.io/tx/0x4ccde79ced3c2f738cad5dd2223d377cd0337d111565b8f5b921565970234bd2</a></td></tr><tr><td>CLAY_USDC Sumero LP Token (SLP)</td><td><a href="https://github.com/SumeroApp/sumero-contracts/blob/develop/contracts/uniswapV2/UniswapV2ERC20.sol">UniswapV2ERC20.sol</a></td><td><a href="https://goerli.etherscan.io/address/0x81d339B8432188cb2d02f16C0983bB222fc2Fe6D">https://goerli.etherscan.io/address/0x81d339B8432188cb2d02f16C0983bB222fc2Fe6D</a></td><td><a href="https://goerli.etherscan.io/tx/0x95cb1471958c7ef5a98216ac9f359932accd4af7e3c30311e1f9245890a55130">https://goerli.etherscan.io/tx/0x95cb1471958c7ef5a98216ac9f359932accd4af7e3c30311e1f9245890a55130</a></td></tr><tr><td>Clay Bonds</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/ClayBonds.sol">ClayBonds.sol</a></td><td><a href="https://goerli.etherscan.io/address/0x18Cc2A71348BB53c0B892155E23C412581c51EF6">https://goerli.etherscan.io/address/0x18Cc2A71348BB53c0B892155E23C412581c51EF6</a></td><td><a href="https://goerli.etherscan.io/tx/0xaee445520aa75fe510db19006fcc13aeb06362ea0f5ad58aeb153cf4629b1369">https://goerli.etherscan.io/tx/0xaee445520aa75fe510db19006fcc13aeb06362ea0f5ad58aeb153cf4629b1369</a></td></tr><tr><td>Expiring Multi Party Lib</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/UMA/financial-templates/expiring-multiparty/ExpiringMultiPartyLib.sol">ExpiringMultiPartyLib.sol</a></td><td><a href="https://goerli.etherscan.io/address/0xb9995270e49d1d8ec6C0aD633Ac3da4d96986858">https://goerli.etherscan.io/address/0xb9995270e49d1d8ec6C0aD633Ac3da4d96986858</a></td><td><a href="https://goerli.etherscan.io/tx/0xd9649ad379de0e5d6b2dd01b1b6b104911f27cd27b3c8c3210d9f6afb60b7706">https://goerli.etherscan.io/tx/0xd9649ad379de0e5d6b2dd01b1b6b104911f27cd27b3c8c3210d9f6afb60b7706</a></td></tr><tr><td>Token Factory</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/UMA/financial-templates/common/TokenFactory.sol">TokenFactory.sol</a></td><td><a href="https://goerli.etherscan.io/address/0xb44740A5D165bC9df5af4d897C90Dee041572c8c">https://goerli.etherscan.io/address/0xb44740A5D165bC9df5af4d897C90Dee041572c8c</a></td><td><a href="https://goerli.etherscan.io/tx/0x98bcb8dcb0c086724caf75bb48c9b083a5ec4979a63a9e8f4754f0fc367a894a">https://goerli.etherscan.io/tx/0x98bcb8dcb0c086724caf75bb48c9b083a5ec4979a63a9e8f4754f0fc367a894a</a></td></tr><tr><td>Uniswap V2 Factory</td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/uniswapV2/UniswapV2Factory.sol">UniswapV2Factory.sol</a></td><td><a href="https://goerli.etherscan.io/address/0x533018ACeb672003aCB2582b5B37B374E033DFA6#code">https://goerli.etherscan.io/address/0x533018ACeb672003aCB2582b5B37B374E033DFA6#code</a></td><td><a href="https://goerli.etherscan.io/tx/0x8976036a776df6149d71f37bb6709cb736cc1e3c64603f46d4aeb4fe1ee90571">https://goerli.etherscan.io/tx/0x8976036a776df6149d71f37bb6709cb736cc1e3c64603f46d4aeb4fe1ee90571</a></td></tr><tr><td>Uniswap V2 Router </td><td><a href="https://github.com/Signo-App/sumero-contracts/blob/develop/contracts/uniswapV2/UniswapV2Router02.sol">UniswapV2Router02.sol</a></td><td><a href="https://goerli.etherscan.io/address/0xe8E31BEdAEF3B64E60e05f2952D233678Ef25368#readContract">https://goerli.etherscan.io/address/0xe8E31BEdAEF3B64E60e05f2952D233678Ef25368#readContract</a></td><td><a href="https://goerli.etherscan.io/tx/0x6bda48a207dbcee892ee088f6c7c112a5933f0ec889432ea534d24590a1aa961">https://goerli.etherscan.io/tx/0x6bda48a207dbcee892ee088f6c7c112a5933f0ec889432ea534d24590a1aa961</a></td></tr></tbody></table>


# Audits

List of all smart contract audits performed to date

Security of the Sumero protocol is our highest priority. All smart contract code and balances are publicly verifiable. We have commissioned an audit of the Sumero project as part of our continuous effort to validate the integrity of the underlying smart contract system.

### Audits <a href="#audits" id="audits"></a>

[BlockSec](https://blocksec.com/) performed the following audit(s) on the Sumero contracts:

* **Sumero contracts:** May 23, 2023&#x20;

{% file src="/files/spioRkc57F1IEUl8OCHl" %}
Signed Blocksec Audit Report
{% endfile %}

| Auditor                           | Subject          | Date     |
| --------------------------------- | ---------------- | -------- |
| [Blocksec](https://blocksec.com/) | Sumero Contracts | 23/05/23 |


# Network Information

<table><thead><tr><th width="138">Network</th><th width="147">Sumero Contract Addresses</th><th width="285">Fully Permissionless Settlement</th><th width="125">Bot Support</th><th width="145">UI Support</th></tr></thead><tbody><tr><td><a href="https://ethereum.org/en/">Ethereum</a></td><td><a href="https://github.com/SumeroApp/sumero-contracts">Mainnet</a>, Goerli</td><td>Yes</td><td>Yes</td><td>Yes</td></tr></tbody></table>

### Testnets

The Sumero protocol is available on the following testnets:

* Goerli

All of the latest addresses can be found via our [addresses](https://app.gitbook.com/o/-MW51XU_Xc09gaDokQ3D/s/-MUsP4_4YsnVEyBaKfGx/~/changes/EKqDDT0ZDopp5BzvBA7k/contracts/addresses) section.


# Glossary of Terms

Description of key terminology

| Term              | Description                                                                                                                                                                                                                                                                                                   |
| ----------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Synthetic Asset   | An crypto-asset that tracks the value of something else.                                                                                                                                                                                                                                                      |
| DeFi              | Decentralised Finance                                                                                                                                                                                                                                                                                         |
| DAO               | Distributed Autonomous Organisation                                                                                                                                                                                                                                                                           |
| Clay              | Sumero's native currency                                                                                                                                                                                                                                                                                      |
| SumSwap           | Sumero's native exchange                                                                                                                                                                                                                                                                                      |
| cSynth            | A synthetic asset created on Sumero. A "clay synth" or cSynth for short.                                                                                                                                                                                                                                      |
| Collateral        | An asset of value staked to mint a synthetic asset. Sumero permits both ether (ETH) and USDC.                                                                                                                                                                                                                 |
| ETH               | Ether (ETH) is the Ethereum blockchain's native cryptocurrency.                                                                                                                                                                                                                                               |
| USDC              | A USD coin issued by centre consortium and backed by assets held in State Street bank.                                                                                                                                                                                                                        |
| zClay Bond        | A zero coupon Clay bond.                                                                                                                                                                                                                                                                                      |
| Zero Coupon Bond  | A bond that only pays interest at maturation date. There are "zero coupon" payments during its lifetime.                                                                                                                                                                                                      |
| Oracle            | Blockchain oracles are entities that connect [blockchains](https://blog.chain.link/what-is-a-blockchain-and-how-can-it-impact-the-world/) to external systems, thereby enabling [smart contracts](https://chain.link/education/smart-contracts) to execute based upon inputs and outputs from the real world. |
| Optimistic Oracle | An [optimistic oracle](https://medium.com/uma-project/introducing-umas-optimistic-oracle-d92ce5d1a4bc) is an oracle where real-world data is integrated with decentralized systems (e.g. blockchains), and the data is accepted as true if it is not disputed during a certain period.                        |


# About The Team

Information About The Sumero Finance Team

| Title                 | Role                        | LinkedIn                                              | Twitter                            | GitHub                                 |
| --------------------- | --------------------------- | ----------------------------------------------------- | ---------------------------------- | -------------------------------------- |
| Ciarán Murray         | Founder                     | <https://www.linkedin.com/in/ciaran-murray-234a6b19/> | <https://twitter.com/C1aranMurray> | <https://github.com/murraci>           |
| Suraj Kohli           | Tech Lead                   | <https://www.linkedin.com/in/surajkohli/>             | <https://twitter.com/imSurajKohli> | <https://github.com/KohliSuraj>        |
| Kris O'Shea           | Junior Blockchain Developer | <https://www.linkedin.com/in/kris-o-shea/>            | <https://twitter.com/krisoshea1>   | <https://github.com/krisoshea-eth>     |
| Rojhat Toptamus       | Blockchain Developer        | <https://www.linkedin.com/in/rojhat-toptamus/>        | <https://twitter.com/0xRojhat>     | <https://github.com/RojhatToptamus>    |
| Shubham Chandravanshi | Blockchain Developer        | <https://www.linkedin.com/in/eth-dredd/>              | <https://twitter.com/eth_dredd>    | <https://github.com/ShubhamChndrvnshi> |


# Additional Links

You can keep up to date with what is happening with Global Access Labs across our various social media platforms and community resources:

* [Twitter](https://twitter.com/SumeroApp)
* [Blog](https://sumero.finance/blog/)
* [Telegram](https://t.me/joinchat/emHqVCldSfZlOTI0)