📈Lending & Leverage
Revolutionary Time-Based Liquidation
Sprocket utilizes a time-based liquidation model, eliminating price-based liquidation risk.
Key Features
Collateral Options
Borrow using $ROCKET as collateral
Leverage Capabilities
Long and short positions on all ecosystem assets
Position Duration
User-defined upfront
Liquidation Trigger
Time expiry only (not price movement)
Liquidation Impact
Assets burnt, decreasing $ROCKET supply
Funding Fees
Automatic adjustments based on open interest
Revenue Split
50% to pool boosts, 50% to treasury
Why Time-Based Liquidation?
Traditional DeFi Problem
Price spikes/drops cause unexpected liquidations
Users lose positions due to temporary volatility
Constant monitoring required
Sprocket's Solution
Define your position duration upfront
No liquidation from price movements
Sleep soundly knowing exact expiry time
Plan your positions with certainty
Adoption Advantage: Time-based liquidation eliminates the #1 fear in DeFi leverage - unexpected liquidation from price volatility.
How It Works
Open Position
Choose your collateral ($ROCKET)
Select leverage amount
Define position duration
During Position
No price-based liquidation risk
Monitor time remaining
Add collateral or close early if desired
Position Close
Repay before expiry to retrieve collateral
Automatic liquidation at time expiry if not repaid
Liquidated assets are burnt (deflationary mechanism)
Revenue Generation
Funding Fees
Automatic adjustments based on long/short ratios
Paid by over-weighted side to under-weighted side
Protocol takes a small percentage
Borrowing Interest
Variable rates based on utilization
Scales with demand for leverage
Direct revenue to treasury and pool boosts