Deposit LP
Deposit is the first step in turning a supported LP position into borrowable capacity inside a Borrow Spoke.
Overview
A deposit moves an approved LP position into Borrow Spoke custody for collateral accounting. The position remains active in the underlying AMM, but the spoke can now evaluate it, track it, and include its contribution in the user's aggregate borrowing capacity.
Important:Avana does not grant borrowing power just because an LP position exists. The position must belong to an approved pool family, pass valuation checks, and fit the spoke's current risk configuration.
Deposit Flow
1. Transfer or Approve the LP Position
The user supplies a supported LP position to the relevant Borrow Spoke. The exact transfer path depends on the LP format, but the end result is the same: the spoke gains custody for collateral accounting.
2. Validate the Pool Family
The spoke checks that the position comes from an approved pool or template with the required oracle coverage, routing support, and governance-defined risk settings.
3. Cache Position State
Position metadata is recorded so the protocol can reconstruct exposure, monitor fee accrual, and recalculate borrowing power as market conditions change.
4. Add the Position to Aggregate Capacity
Once valued, the LP position contributes to the user's total borrowing capacity inside that Borrow Spoke. The Hub sees the updated capacity when the user later attempts to borrow.
Technical Details
Position-aware valuation: the deposit itself does not fix a permanent loan amount. Borrowing power is recomputed from the live LP position using the oracle stack and collateral-factor model.
Format-specific custody: some LP positions are fungible tokens, others are concentrated-liquidity positions with extra metadata. The Borrow Spoke abstracts those custody differences so the credit layer can treat them consistently.
No forced unwind on deposit: supplying collateral does not remove liquidity from the pool. The unwind path is reserved for explicit user actions or liquidation.
Supported LP Position Types
| Family | Examples | Admission Notes |
|---|---|---|
| Concentrated liquidity positions | Range-bound NFT or position-manager based LPs | Range, tick position, and fee accrual are part of the valuation path. |
| Fungible stable or correlated LPs | Stable-swap and tightly correlated pool shares | Pool inventory and unwind quality drive conservative borrowing power. |
| Weighted and multi-asset LPs | Weighted baskets and multi-token pools | Each supported family is admitted only through approved pool templates. |
Exact live support is governed by the approved pool list. See Allowed LP Pools for the admission model.
After Deposit
- Each approved position contributes to aggregate borrowing capacity inside the spoke
- LP principal stays active in the underlying pool and may continue accruing fees
- Borrowing still depends on Hub liquidity, spoke health, and collateral-factor limits
- The next canonical step is Borrow Assets