diff --git a/docs/govern/mars-risk-framework.mdx b/docs/govern/mars-risk-framework.mdx
index 4ae1268..dc9cc0a 100644
--- a/docs/govern/mars-risk-framework.mdx
+++ b/docs/govern/mars-risk-framework.mdx
@@ -2,29 +2,71 @@
sidebar_position: 4
---
-# Mars Risk Framework
+# Risk Methodology
-Each new protocol and asset approved for borrowing and lending comes with unique risks and unique profit opportunities. It’s the job of the Martian Council to balance these risks and rewards and safeguard against shortfall events by setting calculated risk parameters.
+Risk methodology refers to the set of parameters and calculations used by the Mars protocol to determine the risk associated with different assets, protocols, and user positions, in order to minimize the risk of bad debt and ensure orderly and profitable liquidations.
+The process involves several key steps:
-Delphi Labs has proposed a [rigorous risk framework](https://github.com/mars-protocol/mips/blob/main/Mars-Risk-Framework.md) to help guide those decisions for Mars v2. Designed to assess the riskiness and determine the risk parameters of protocols and assets to be incorporated into the protocol, this framework adapts internationally used best practices to the fast-changing, experimental reality of DeFi. While the framework is initially put at the disposal of the Mars Council, it could be applied more broadly to any DeFi platform that needs to evaluate asset or protocol-related risks.
+## 1. Protocol Integration
-It would supersede Mars’ [original risk framework](https://mars-protocol.medium.com/introducing-mars-protocols-risk-framework-1a452b49ad33), and covers new protocol integrations as well as two specific token types:
+The first step is to determine whether a specific protocol is suitable for use as collateral. This involves considering two categories of risk, i.e, Technical Risk and Centralization Risk:
-- Single-asset tokens (i.e. OSMO)
-- Liquidity provisioning (LP) tokens (i.e. OSMO-axlUSDC LP tokens)
+### Technical Risk
+It involves: Smart contract risk, audit track record, critical vulnerabilities, and bug bounty programs
-## Framework Summary
+- **Smart Contract Risk:** Analyzing the underlying smart contract of the asset for vulnerabilities that could impact its value or functionality.
+- **Audit Track Record:** Regular audits by reputable security firms provide assurance of the smart contracts' integrity. The results of these audits should be made public to foster trust and transparency.
-The Mars risk framework combines proven TradFi risk metrics (including Conditional Value at Risk or CVaR and the Amihud Illiquidity Measure) with new crypto-specific metrics (including oracle analysis and decentralization tests) to standardize how risk is measured in DeFi.
+### Centralization Risk
-A two-step process is used to incorporate a new protocol or asset into the platform. The first step involves assessing the protocol or asset’s technical and centralization risks. In the second step, the framework defines how the different risk parameters should be set for the given asset/LP token based on market and liquidity risk metrics.
+Assessing the degree of control or centralization associated with the asset. Highly centralized assets pose greater risks due to potential manipulation or mismanagement.
-The Risk Framework scores all assets on a spectrum. The riskier an asset is, the greater the limitations the protocol imposes on that asset.
+## 2. Determining Max LTV and Liquidation LTV
-## Supporting New Assets and LP Tokens
+Just like protocol integration, the asset and LP tokens also go through a critical examination of associated technical risk and centralization risk. However, as per the [Mars Risk Framework](https://blog.marsprotocol.io/blog/introducing-mars-protocols-risk-framework-2-0) two additional vectors are taken into account before listing them, i.e., oracle and bridging risk.
-Like new protocols, any new asset or LP token that’s under consideration for support on Mars should be carefully examined for technical and centralization risks. The Martian Council should also consider oracle and bridging risks (where applicable).
+If a protocol passes the eligibility criteria, the next step is to determine the appropriate Max LTV and Liquidation LTV based on factors like centralization, asset volatility, smart contract security, bridging risk, and liquidation thresholds.
-Because LP tokens are potentially subject to impermanent loss (IL), they may have further limits imposed on their LTVs.
+### Max LTV (Loan-to-Value Ratio)
+
+The Max LTV is the maximum percentage of a collateral asset's value that can be borrowed. It's a crucial parameter in determining the risk associated with a loan. For instance, if an asset is valued at $100 and the Max LTV is 70%, the maximum loanable amount is $70.
+
+### Liquidation LTV
+
+The Liquidation LTV is the threshold at which a borrower's position is automatically liquidated to protect the lender. It's typically set below the Max LTV to provide a safety margin. However, on Mars it has been set above the Max LTV, For instance, if the Max LTV is 74%, the Liquidation LTV could be 75% for an asset, and the position will be liquidated when the loan-to-value ratio reaches 75%.
+The difference between the Max LTV and Liquidation LTV creates a buffer zone, allowing Liquidators to liquidate the asset to maintain profitability and avoid potential losses.
+
+### Health Factor
+
+The Health Factor is a real-time measure of a borrower's position health. It's calculated by dividing the total value of collateral as per Liquidation LTV by the total debt. A health factor greater than 1 indicates a healthy position, while a value below 1 signals liquidation risk.
+For example, if a borrower has $150 worth of collateral as per Liquid LTV and owes $100, their health factor is 1.5. This indicates a relatively safe position. However, if the collateral value drops to $100 while the debt remains constant, the health factor becomes 1, indicating a liquidation risk.
+
+## 3. Implementing Deposit Caps
+
+To further manage risk, [Deposit Caps](https://forum.marsprotocol.io/t/mrc-35-deposit-caps-methodology/1050) are imposed on individual assets. These are limits imposed on the amount of a specific asset that can be deposited into the protocol. These caps help mitigate systemic risks by preventing excessive concentration of a particular asset.
+Mars Protocol employs a sophisticated Deposit Cap Framework to determine deposit caps, considering factors such as:
+
+- a. On-Chain Liquidity: The amount of liquidity available for a specific asset on the blockchain.
+- b. Global Liquidity: The total liquidity across both centralized and decentralized exchanges.
+- c. Price Impact: The potential impact of large-scale liquidations on asset prices.
+
+### Calculation Methodology:
+
+**MaxCap = min(MedianOnChainDepth_25pct_90d, 10 * Global Depth_2pct)**
+
+Where:
+- MedianOnChainDepth_25pct_90d: The median dollar cost required to move the on-chain price down by 25% over the past 90 days.
+- GlobalDepth_2pct: The total dollar liquidity required to move the price by -2% across major exchanges.
+
+By setting [deposit caps](https://forum.marsprotocol.io/t/mrc-35-deposit-caps-methodology/1050), the protocol can reduce the impact of a significant price decline in a single asset on the overall platform while deterring malicious actors from manipulating the protocol by artificially inflating asset prices. It also helps to maintain a diversified collateral pool, which can improve the protocol's resilience.
+
+## Overall Goal
+
+The risk methodology framework aims to balance risk and reward by carefully selecting eligible assets, setting appropriate risk parameters, and implementing deposit caps. The ultimate goal is to create a stable and sustainable lending platform while maximizing opportunities for borrowers and lenders.
+All these parameters and factors work in conjunction to manage risk effectively. A well-balanced combination of Max LTV, Liquidation LTV, Deposit Caps, and Health Factors is essential for the stability and sustainability of a lending protocol.
+
+By following this structured approach, Mars Protocol aims to effectively manage risk and protect the interests of all participants.
+
+Read More: [Mars Risk Framework](https://github.com/mars-protocol/mips/blob/main/Mars-Risk-Framework.md#4-model-usage-monitoring-and-update)
diff --git a/docs/learn/mars-v2/borrow.mdx b/docs/learn/mars-v2/borrow.mdx
index 779d125..99602b1 100644
--- a/docs/learn/mars-v2/borrow.mdx
+++ b/docs/learn/mars-v2/borrow.mdx
@@ -2,8 +2,19 @@
sidebar_position: 3
---
+
+
# Lend & Borrow
+Mars Protocol offers a unique lending and borrowing platform that allows you to earn passive income by lending crypto assets or accessing liquidity by borrowing against the collateral. This document provides an overview of the lending and borrowing process on Mars, the benefits associated with each, and important considerations for borrowers.
+
+## How to Lend and Borrow
+
+### Lending
+
+- 1. Connect your wallet: Ensure your supported wallet (e.g., Keplr, Leap, Cosmostation) is connected to the Mars Protocol platform.
+
+
## The Red Bank
The Red Bank is a peer-to-peer, decentralized, autonomous token lending/borrowing smart contract deployed to a particular Outpost. Lenders deposit tokens into the Red Bank to earn token rewards (sometimes described as 'yield' or an 'interest rate' or 'APR/APY') that are ultimately funded by token borrowers.
diff --git a/docs/learn/mars-v2/liquidations.mdx b/docs/learn/mars-v2/liquidations.mdx
index 71e5631..1551b18 100644
--- a/docs/learn/mars-v2/liquidations.mdx
+++ b/docs/learn/mars-v2/liquidations.mdx
@@ -2,225 +2,122 @@
sidebar_position: 7
---
-import Admonition from '@theme/Admonition'
+import LTVExample from '@site/static/img/mars-v2/ltv-example.png';
-import RedBankLiquidationsFormulaUrl from '@site/static/img/learn/red-bank/red-bank-liquidations-formula.png';
-
-import RedBankLiquidations1Url from '@site/static/img/learn/red-bank/red-bank-liquidations1.png';
-
-import RedBankLiquidations2Url from '@site/static/img/learn/red-bank/red-bank-liquidations2.png';
-
-import FormulaUrl from '@site/static/img/mars-v2/formula.png';
-
-import Formula2Url from '@site/static/img/mars-v2/formula-2.png';
-import Formula3Url from '@site/static/img/mars-v2/formula-3.png';
-
-import NewHFCurveUrl from '@site/static/img/mars-v2/new-hf-curve.png';
+import HFExample from '@site/static/img/mars-v2/hf-example.png';
# Liquidations
-## Overview
-
-One of the most critical upgrades of Mars v2 relates to its new liquidations mechanism. Within Mars (and generally within DeFi lending products), the liquidations mechanism is the fundamental component that guarantees (or intends to) the solvency of the system. As such, its importance cannot be overstated.
-
-When and if an asset passes the whitelisting process, it will be assigned a Liquidation LTV. Liquidation LTVs are used to calculate a Health Factor (HF) for each credit account. A HF determines if the risk-adjusted value of the total positions in a credit account exceeds the total amount borrowed in the account and is represented in the form of a ratio. If the HF drops below 1, the account is deemed at risk and is available to be liquidated. Note that a health factor below 1 does not necessarily mean that the credit account is insolvent, but rather that it has exceeded its Liquidation LTV and may be approaching insolvency.
-
-Since HFs apply to all assets in a given rover credit account, all of the user’s collateral becomes eligible for liquidation. Liquidators could receive back a diverse range of tokens (i.e. axlUSDC, OSMO and ATOM). The liquidation mechanism in rover credit accounts mirrors the process outlined in the section on Red Bank Liquidation Mechanisms.
-
-
-Liquidations occur inside the liquidator’s credit account. Any liquidated assets are sent directly to the liquidator’s rover rather than the user’s wallet. Because liquidators must use the credit manager to initiate a liquidation, they can borrow the funds required to pay down Red Bank debt. This is possible because the transactions can be completed in a single transaction. Specifically, a liquidator can borrow the debt asset, swap the collateral asset back to the debt asset and repay the Red Bank all at once. In this way, credit accounts enable a flash-loan like mechanism to facilitate liquidations.
-
-
-Liquidations follow a multi-step process:
-
-1. A third-party liquidator uses on-chain data to identify an account that has a health factor -1.
-2. This liquidator identifies a debt asset they wish to pay back on behalf of an account.
-3. This liquidator also identifies the collateral asset they wish to receive.
-4. The liquidator pays back an arbitrary amount of the user’s debt, up to the close factor (i.e. if the close factor is 50%, the liquidator can only repay up to 50% of the user’s debt in a single liquidation transaction).
-5. The liquidator receives a portion of the user’s collateral equal to the debt repaid and a liquidation bonus (i.e. if the liquidation bonus of the given collateral asset is 10% and the liquidator repaid an equivalent of $100 USD of the user’s debt, the liquidator would receive $110 USD worth of the user’s collateral)
-
-Consider the following liquidation example.
-
-First, a user deposits and borrows from a Red Bank outpost. Over time, the value of their deposit falls. This pushes their health factor below 1 and makes the account eligible for liquidation.
-
-
-
-Liquidation flow, Part 1
-
-A liquidator then identifies the account, pays off a portion of the debt, and receives a 5% liquidation bonus. The user retains a portion of their debt plus their original deposit(s) minus the liquidation bonus.
-
-
-
-Liquidation flow, Part 2
-
-## Credit Account Health Calculation in the UI
-
-In the UI, Credit Account Health is calculated using a logarithmic function with a base of 3.5. This logarithmic HF calculation offers a more intuitive and responsive representation of account health. Here's how the Health Factor (HF) is interpreted in this system:
-
-### Health Status Thresholds
-
-- **Healthy Accounts**: An account is considered "Healthy" when its HF reaches 1.5 or higher, signifying a relatively stable and secure state.
-- **100% Health**: An account achieves 100% health at an HF of 3.5, indicating optimal health and safety.
-- **Liquidate-able Accounts**: The health of a liquidate-able Credit Account is 0%, underscoring the need for timely action when an account reaches this state.
-
-
-
-This logarithmic approach ensures that users can more easily understand and monitor the health of their credit accounts without the need for linear conversion. If your credit account is approaching 0, you know you are at risk of liquidation.
-
-## Mars v1 Liquidation Mechanism
-
-Generally, liquidation mechanisms consist of the set of rules and processes that determine when and how risky positions should be closed (or liquidated) and the incentives for outside parties to do so.
+Liquidation is a critical mechanism within Mars V2 designed to protect the protocol from losses due to undercollateralized loans. When a borrower's collateral value falls below a certain threshold, their position becomes undercollateralized, posing a risk to lenders. Liquidation serves to mitigate this risk by automatically selling the borrower's collateral to repay the outstanding loan.
+A thorough understanding of the liquidation process is essential for both lenders and borrowers within the Mars V2 ecosystem. For lenders, it ensures the safety of their deposited funds. For borrowers, it provides knowledge on how to avoid liquidation and manage their positions effectively. By comprehending the liquidation mechanics, participants can make informed decisions and optimize their interactions with the protocol.
-Mars v1 used a simple liquidations mechanism where the Close Factor (CF)* and the Liquidation Bonus** are fixed. The way this mechanism works is, whenever a position becomes liquidatable (i.e. its Health Factor drops below 1), any third party can repay a portion of the debt of that position (determined by the CF) to receive a portion of the collateral of the same position. The difference between the value of the collateral received and the value of the debt repaid is determined by the Liquidation Bonus (LB). Let’s explore an example:
+## What is Liquidation on Mars
-- Assume there’s a position with 100 ABC tokens as collateral and 200 XYZ tokens as debt.
-- Assume the value of ABC drops and the Health Factor of the position drops below 1.
-- As soon as that happens, any third party (commonly known as liquidators) can repay a portion of the debt to receive a portion of the collateral.
-- The portion of the debt that the liquidator can repay is determined by the CF. If the CF is 50%, then the liquidator will be able to repay a maximum of 100 XYZ tokens, or 50% of the total XYK tokens.
-- As an incentive to perform this task, the system offers the liquidator a portion of the collateral worth more than the debt repaid in return. This value is determined by the LB. For example, if the LB is 10% and the value of the debt repaid is 1,000 USD, then the liquidator would receive 1,100 USD worth of collateral for liquidating the given position.
+Liquidation is the process of closing an undercollateralized loan by selling the borrower's collateral. This action is triggered when the value of the collateral falls below a predetermined liquidation threshold (i.e., 1), which is calculated based on the loan-to-value (LTV) ratio and the close factor.
-While this mechanism has served Mars well, it offers significant improvement opportunities for the protocol. These improvements relate to:
+## How Liquidation Protects the Protocol
-- Capital efficiency:
- - Since the LB isn’t market driven but rather needs to be defined a priori, the LB needs to be set aggressively such that under any condition it offers a significant incentive for liquidations to happen. A large LB translates into borrowers being punished more than they need to and more value leaking away from the protocol and towards liquidators.
- - A similar situation happens with the CF. Given that it needs to be defined a priori, it should be set conservatively such that it offers security under any potential future scenarios. A larger than needed CF punishes borrowers and further leaks value from the protocol.
-- Systemic Robustness:
- - Cascading liquidations: As this system tends to lead to higher than needed LB and CF, it is more prone to produce liquidation cascades. The reason for this is that a higher LB and CF lead to a higher value of the liquidated user’s collateral offered to the liquidator and thus, can lead to a larger value of collateral being liquidated on the market. This in turn can have a negative price impact on the collateral’s price and lead to further liquidations (i.e. a liquidations cascade).
- - MEV: Given that as soon as the HF of a position drops below 1 the whole LB is offered to third parties, this system tends to lead to liquidators competing for the same liquidation opportunity at the same time, which may lead to congestion and other negative externalities on the network.
-- Flexibility: As the LB is inflexible and needs to be set a priori, it could happen that the LB offered isn’t significant enough for a position to be closed. If this happens, the position won’t be closed and can lead to the system accruing bad debt.
+Liquidation safeguards the protocol by preventing losses for lenders. When a borrower's position becomes undercollateralized, there's a risk that the borrower might default on their loan. By liquidating the position, the protocol recovers a portion of the borrowed funds, reducing potential losses for lenders.
-## Mars v2 Liquidation Mechanism
+## Role of Liquidation in Maintaining System Health
-The new liquidations mechanism incorporated into Mars v2 intends to improve upon each of the above concerns. The way it does so is by implementing a dynamic methodology for determining the LB and CF. Let’s explore.
+Liquidation plays a crucial role in maintaining the overall health of the Mars V2 ecosystem. By incentivizing liquidation, the protocol ensures that undercollateralized positions are promptly addressed, preventing a cascade of defaults and protecting the stability of the platform.
-In the new liquidations mechanism, the LB isn’t static but rather changes with the HF of the position. All else equal, the lower the HF of a position, the higher the LB offered to liquidators will be. This mechanism, pioneered by Euler, intends to recreate a Dutch Auction where, instead of time determining how the LB increases, the HF does. Let’s explore a simplified example of how this model could work*:
+## Liquidation Parameters
-- Assume we have a position with some collateral and some debt.
-- Assume we have parameterized the liquidations system such that the LB increases linearly as the HF decreases (i.e. for every 1pp the HF drops, the LB increases by 1pp).
-- Now, imagine the price of the collateral drops and the HF decreases to 0.99. At that moment the LB would be 1% (1-0.99).
-- 1% doesn’t seem to be enough incentive for liquidators as no liquidations happen at that time.
-- After some time, however, the HF drops to 0.97. At that moment, the LB offered would be 3%.
-- As 3% is enough for a liquidator, a liquidation happens at that level.
+There are two major Liquidation Parameters on Mars
+- 1. Liquidation Bonus
+- 2. Close Factor (CF)
-*Note that this example follows a specific parametrization of the system. If parametrized differently, the results might be different. What will tend to be the same across all parametrizations though, is the inverse relationship between the HF and the LB.*
+### Liquidation Bonus
-The exact formula for calculating the LB under the new mechanism is as follows:
+The liquidation bonus is a reward offered to liquidators who initiate the liquidation of an undercollateralized position. This incentive encourages users to actively participate in maintaining the protocol's health by liquidating risky positions. The bonus is typically a percentage of the seized collateral, distributed to the liquidator.
+The potential for profit motivates liquidators to monitor the protocol for undercollateralized positions, thereby helping to prevent losses for lenders.
-Liquidation Bonus = min(intercept + (slope * (1 - HF)), maxLB*)
+### Close Factor
-maxLB* = max(min(CR - 1, maxLB), minLB)
+The close factor is a multiplier applied to the loan-to-value (LTV) ratio to determine the liquidation threshold. It is a safety buffer that ensures sufficient collateral remains after liquidation to protect lenders.
+Within this new system, the CF will be determined dynamically using a parameter known as the Target Health Factor (THF). The THF is a governance-defined (and updatable) parameter that determines the ideal HF a position should be left at immediately after the position has been liquidated. The CF, in turn, is a result of this parameter: the maximum amount of debt that can be repaid to take the position to the THF. For example, if the THF is 1.10 and a position gets liquidated at HF = 0.98, then the maximum amount of debt a liquidator can repay (in other words, the CF) will be an amount such that the HF after the liquidation is at maximum 1.10.
-Where:
+### Key Terms
-- CR is the Collateralization Ratio of the position, defined as the value of the assets divided by the value of the debt.
-- HF is the Health Factor of the position.
-- Intercept and slope are governance defined parameters that determine how the LB increases as the HF decreases.
-- maxLB and minLB are governance defined parameters that determine the maximum and minimum values the LB can have.
+Before moving ahead, it is important we understand the other key terms:
-Now let’s explore how the CF is determined under this model. Within this new system, the CF will be determined dynamically using a parameter known as the Target Health Factor (THF). The THF is a governance defined parameter that determines the ideal HF a position should be left at immediately after the position has been liquidated. The CF, in turn, is a result of this parameter: the maximum amount of debt that can be repaid to take the position to the THF. For example, if the THF is 1.05 and a position gets liquidated at HF = 0.98, then the maximum amount of debt a liquidator can repay (in other words, the CF) will be an amount such that the HF after the liquidation is at maximum 1.05. Notice that, in a similar vein to the LB, all else equal, the lower the HF of a position, the higher the CF will be. This makes sense since the HF is the best proxy we have for the riskiness of a position. As such, the riskier a position, the higher the CF allowed when liquidating it.
+- **1. Max LTV (Loan-to-Value Ratio):** The maximum amount that can be borrowed relative to the value of the collateral. For example, if you deposit 1WBTC worth $60,000 as collateral and it’s Max LTV is 80%, you can only borrow up to $48,000.
-So, how does this system improve upon the points described above?:
+- **2. Liquidation LTV:** It is the threshold at which a position is considered undercollateralized and subject to liquidation. It's typically set below the Max LTV to provide a safety margin. However, on Mars, it is greater than Max LTV. If the value of your collateral falls below the Liquidation LTV, the platform may automatically sell your collateral to repay the loan.
-- Capital efficiency:
- - The LB is determined dynamically as a function of the HF. If we assume that the HF of a position will tend to drop gradually, then this mechanism will tend to gradually increase the LB offered to liquidators as the HF decreases. If this happens, then we generally expect liquidations to happen at the lowest possible LB that generates a profitable liquidation. Thus, this system will likely lead to lower LBs (and better conditions for borrowers) and less value leakage for the protocol.
- - The CF methodology also has the potential to lead to better capital efficiency. In particular, the lower the THF chosen, the lower the CF will be and the more capital efficient the system will be. The lower the THF, however, the less margin of safety the liquidation gives the position after liquidation. Thus, there’s a balance to strike here between capital efficiency and margin of safety when determining the THF.
-- Systemic Robustness:
- - Liquidations cascades: As covered above, this system is likely to lead to lower LBs and CFs. All else equal, this means lower values of liquidated collateral and thus, a lower risk of liquidation cascades. Furthermore, this system is likely to lead to fewer liquidations overall. Under this system, for instance, a position that hovers around HF = 1 might not offer a sufficient LB for immediate liquidation. In time, such positions could become healthy again, meaning that fewer liquidations were even needed. This property also leads to a decreased risk of liquidation cascades.
- - MEV: As mentioned above, if the LB increases gradually, the most efficient liquidator will tend to liquidate first. If that’s the case, this has the potential to lead to no congestion issues at all, since the most efficient liquidator will tend to liquidate alone, without any competition from more inefficient liquidators.
-- Flexibility: Under this model, the right LB doesn’t need to be determined a priori. Rather, it will be set by a market-driven mechanism where the final LB will depend on market conditions at that specific point in time. This solves for the arbitrariness of having to define a fixed LB a priori for any and all future market scenarios.
+You can check the example below. In this scenario, the Max LTV is 74% and Liquidation LTV is 75%.
-**As with most decisions in DeFi, the implementation of this new mechanism comes with tradeoffs. The most important one is that it’s a more complex mechanism. This additional complexity might translate into unforeseen issues at both the economic (incentives) and smart contract levels. Furthermore, this migration implies moving from a relatively battle-tested mechanism to a completely new implementation. These risks mean that there is increased potential for hacks, exploits, economic manipulations, and smart contract bugs, which could result in loss of funds for both current and future depositors, with no remedy, recovery or refund mechanism to the adversely affected users.**
+
-## Liquidation Fee
+- **3. Health Factor:** A ratio of collateral value as per Liq LTV to debt, indicating the health of a loan position. For example in the below scenario, the health of the user is 50% with a health factor of 1.87. However, if the user borrows more and due to price fluctuations the value of collateral falls down or the value of debt increases, the Health factor may fall below one, which may lead to liquidation.
-The total liquidation fee (TLF) charged to a liquidated user will be equal to the liquidation bonus:
+
-`Total Liquidation Fee = Liquidation Bonus`
+## Liquidation Process
-### Protocol Liquidation Fee
+The liquidation process on Mars V2 can be broken down into the following steps:
-The Protocol Liquidation Fee (PLF) is a fee charged whenever a liquidation happens that flows to the protocol. The PLF is defined as a % taken from the Liquidation Bonus. For example, if the PLF is 20% and the liquidation bonus of a given liquidation transaction is 100 USD, the PLF would be equal to 20 USD and would flow to the protocol (the remaining 80 USD would flow to the liquidator). Some additional details:
+- 1. A third-party liquidator uses on-chain data to identify an account that has a health factor of less than 1 as per LiqLTV
+- 2. This liquidator identifies a debt asset they wish to pay back on behalf of an account.
+- 3. This liquidator also identifies the collateral asset they wish to receive.
+- 4. The liquidator pays back an arbitrary amount of the user’s debt, up to the close factor (i.e. if the close factor is 50%, the liquidator can only repay up to 50% of the user’s debt in a single liquidation transaction).
+- 5. The liquidator receives a portion of the user’s collateral equal to the debt repaid and a liquidation bonus (i.e. if the liquidation bonus of the given collateral asset is 10% and the liquidator repaid an equivalent of $100 USD of the user’s debt, the liquidator would receive $110 USD worth of the user’s collateral)
-- Fee Flow: Initially, 100% of the fee will flow to the Safety Fund in axlUSDC.
- - *^ The swapping of these fees to axlUSDC could be handled in a similar way to protocol fees received from interest payments; they get accumulated somewhere until swapping them makes sense.*
-- How it’s determined: Governance determined and updatable on a global basis.
+**To illustrate the process, let’s take an example:**
-### Liquidation Bonus (LB)
+Alice has deposited 5 BTC = `$100,000` in the Mars credit account as collateral and has borrowed 40 ETH at `$10,000`. Assuming the LiqLTV at 82% of the value the collateral power of BTC will be `$420,000 [(5*100,000)*82%]`.
+In this scenario, the health factor is `1.05 (420,000/400,000)`.
+If the price of ETH increases to `$11,000`, the value of the borrowing/debt will also rise to $440,000. Now, the net worth will be equal to `$60,000 ($500,000 - $ $440,000)` This price fluctuation may lead to a fall in health factors from `1.05 to 0.93`.
-The LB flows to liquidators (and a part to the protocol) and is designed to incentivize liquidators to liquidate unhealthy positions. Specifically, the LB defines the additional reward liquidators will receive when liquidating a user. For example, if the LB is 5% and the PLF is 20%, a liquidator that repays 100 USD worth of debt will receive 104 USD (= 100 * (1 + ((1 - PLF) * LB)) = 100 * (1 + (0.8 * 5%)) = 100 * 1.04 = 104) worth of collateral as a reward for liquidating the unhealthy position.
+Now because the health factor is `<1` the position can be liquidated.
+Now, the liquidator can decide to provide 30 ETH back to the protocol and get a Liquidation Bonus.
+Let’s say the Liquidation Bonus is `10%`, then here’s how it will work:
-The LB will depend on the Health Factor and a couple other parameters as follows:
+- 1. The liquidator will liquidate BTC equivalent to 30 ETH from the collateral (considering the closing factor)
+- 2. BTC amount = `3.3 ($11,000*30)/100,000`
+- 3. He will also get `0.33 BTC` as a Liquidation Bonus `($100,000*0.3 = $30,000)`
+- 4. Provide those `30 ETH` back to the protocol and reduce the total debt of the user.
-`Liquidation Bonus = min(B + (slope * (1 - HF)), maxLB*)`
-`maxLB* = max(min(CR - 1, maxLB), minLB)`,
+Now the new equation will be:
-Where:
+`Collateral = (5 BTC - 3.6 BTC) @100,000 = 1.4 BTC @100,000 = $140,000`
-- `B` marks the level at which the LB starts when HF drops marginally below 1.
- - If set at 1%, at HF = 0.999 the LB will be 1%. If set at 0%, the LB starts increasing from 0% as the HF drops below 1.
- - How it’s determined: Governance determined and updatable on a per collateral basis.
- - Values it can take: [0%, 10%]
-- `slope` defines the slope at which the LB increases as the HF decreases. The higher the slope, the faster the LB increases as the HF decreases.
- - If set at 1, for every percentage point the HF decreases, the LB increases by a percentage point.
- - How it’s determined: Governance determined and updatable on a per collateral basis.
- - Values it can take: [1, 5]
-- `maxLB*` determines the maximum liquidation bonus that can be granted to the liquidator, taking into account the Collateralization Ratio (CR) of the position and a governance defined minLB parameter.
-- `CR` is the Collateralization Ratio of the position.
- - Calculated as `CR = Total Assets / Total Debt`.
- - Notice that, all else equal, the lower the CR, the lower the LB that can be granted to the liquidator. The rationale here is to avoid granting large liquidation bonuses when the position has a low collateralization level or is undercollateralized.
-- `maxLB` is the maximum LB that can be granted to a liquidator; in other words, the maxLB establishes a ceiling to the LB. This is a precautionary parameter to mitigate liquidated users being over-punished.
- - How it’s determined: Governance determined and updatable on a global basis.
- - Values it can take: [5%, 30%]
-- `minLB` is the minimum LB that will be granted to liquidators even when the position is undercollateralized.
- - This is the minimum incentive we want to offer liquidators to close a position even when it is undercollateralized.
- - How it’s determined: Governance determined and updatable on a global basis.
- - Values it can take: [0%, 10%]
+`Adjusted Liquid LTV @82% = $140,000*82% = 114,800`
-## Close Factor
+`Borrowing = (40 ETH - 30 ETH) @11,0000 = 10 ETH @11,000 = $110,000`
-The Close Factor (CF) determines the maximum amount of debt that can be repaid in a single liquidation transaction. For example, if the CF is 50%, a liquidator can repay up to 50% of the user’s debt in one single transaction.
+`New Health Factor: 140,000/110,000 = 1.04`.
-### *How it works
+`Net worth after liquidation: $140,000 - $110,000 = $30,000`
-Within this new system, the CF will be determined dynamically using a parameter known as the Target Health Factor (THF). The `THF` is a governance defined (and updatable) parameter that determines the ideal HF a position should be left at immediately after the position has been liquidated. The CF, in turn, is a result of this parameter: the maximum amount of debt that can be repaid to take the position to the THF. For example, if the THF is 1.10 and a position gets liquidated at HF = 0.98, then the maximum amount of debt a liquidator can repay (in other words, the CF) will be an amount such that the HF after the liquidation is at maximum 1.10.
+That means the user had to incur a penalty of `$30,000 ($60,000 - $30,00)` i.e., (net worth before liquidation - net worth after liquidation).
-### Code Safeguards
-Values `THF` can take: [1, 2]
+## Governance's Role In Setting Parameters
-### Formula
+The protocol's governance body plays a crucial role in determining liquidation parameters such as liquidation bonuses, close factors, and health factor thresholds. These parameters are subject to change based on market conditions and risk assessments.
-The formula to calculate the maximum debt that can be repaid by a liquidator is as follows:
+### Key functions of the governance body in setting liquidation parameters:
-
+**Risk Assessment:** The governance body of Mars protocol analyzes market conditions, asset volatility, and potential risks to determine appropriate liquidation thresholds.
-Where:
+**Parameter Adjustment:** Based on these assessments, Mars can propose and implement changes to liquidation bonuses, close factors, and health factor thresholds.
-- MDR: Maximum Debt Repayable
-- THF: Target Health Factor
-- $Debt_0$: Value of debt before the liquidation happens
-- $Collateral_0$: Value of collateral before the liquidation happens
-- LTV: LTV of the collateral
-- TLF: Total Liquidation Fee
+**Community Input:** Mars often seeks community involvement in decision-making processes through proposals and voting mechanisms. This ensures that the parameters reflect the needs and preferences of the user base.
-### Edge cases
+**Transparency and Accountability:** Mars's governance body is responsible for transparently communicating changes to liquidation parameters and providing justifications for its decisions.
-All debt is liquidatable: When MDR is less than 0, it means even repaying the whole debt is not going to be enough to bring the account back to the THF, so the liquidator should be able to repay all the available debt. Given the numerator in the MDR formula above is always greater than 0, MDR less than 0 happens when the denominator is less than 0 (we include the case where it’s 0 given it would make MDR equal infinite in the above formula):
+## Precautions for users to protect themselves from Liquidation
-
+Borrowers can implement several strategies to minimize the risk of liquidation:
- Which equals:
+- **Maintain Adequate Collateralization:** Ensuring that the value of the collateral consistently exceeds the loan amount by a substantial margin helps prevent liquidation.
+- **Monitor Health Factor:** Regularly checking the health factor of a loan position allows borrowers to identify potential risks early on and take corrective actions.
+- **Manage Debt Levels:** Prudent borrowing and timely debt repayment can significantly reduce the likelihood of liquidation.
+- **Diversify Collateral:** Spreading collateral across different assets can help mitigate the impact of price fluctuations on a single asset.
-
+The health factor is a crucial indicator of a loan's health. It represents the ratio of the collateral value to the loan amount. By closely monitoring the health factor, borrowers can proactively manage their positions and take steps to avoid liquidation.
diff --git a/docs/learn/tutorials/basics/getting-started.mdx b/docs/learn/tutorials/basics/getting-started.mdx
new file mode 100644
index 0000000..ac7f49f
--- /dev/null
+++ b/docs/learn/tutorials/basics/getting-started.mdx
@@ -0,0 +1,93 @@
+---
+sidebar_position: 1
+---
+
+import connectwallet from '@site/static/img/mars-v2/wallets.png';
+import wallettransfer from '@site/static/img/mars-v2/wallet-transfer.png';
+import ibctransfer from '@site/static/img/mars-v2/ibc-transfer.png';
+import hlsstaking from '@site/static/img/mars-v2/hls-staking.png';
+
+# Getting Started
+
+This guide will walk you through the initial steps of interacting with Mars Protocol. Whether you're a seasoned DeFi user or new to the world of decentralized finance, we've got you covered.
+
+## Setting Up Your Wallet
+
+The first step to interacting with Mars Protocol is setting up a compatible wallet such as Keplr, Leap, and Cosmostation Wallet.
+These wallets provide a secure and convenient way to manage your digital assets and interact with decentralized applications.
+
+
+
+### Choosing the Right Wallet
+
+Mars Protocol is built on Neutron and Osmosis and Keplr is well-suited for both these chains. However, you must consider factors like security, ease of use, and supported features when selecting a wallet.
+
+### Setting Up Your Wallet
+
+- Follow the step-by-step instructions provided by your chosen wallet provider to create a new account. To set up your Keplr wallet you can follow the steps mentioned here.
+- Make sure to back up your seed phrase in a secure location and never share your seed phrase with anyone.
+
+### Connecting Your Wallet to Mars Protocol
+
+- Once your wallet is set up, you'll need to connect it to the Mars dApp.
+- Follow the on-screen instructions to establish a connection between your wallet and the Mars Protocol.
+
+## Understanding Networks
+
+Mars Protocol operates on Neutron and Osmosis. Each network has its own unique characteristics, such as speed, fees, and available assets.
+
+### Supported Networks
+
+**Neutron**
+
+Neutron is a layer-1 blockchain designed for interoperability and scalability. It offers high throughput and low transaction fees, making it an efficient platform for DeFi applications. Neutron's focus on interoperability enables seamless asset transfers and interactions with other chains, expanding the possibilities for DeFi innovation.
+
+**Osmosis**
+
+Osmosis is a decentralized exchange (DEX) built on the Cosmos ecosystem. It offers a wide range of trading pairs, high liquidity, and fast transaction speeds. As a core component of the Cosmos ecosystem, Osmosis benefits from interoperability with other chains through IBC, allowing for seamless asset transfers.
+
+### Network Selection
+
+- Choose the network that best suits your needs based on factors like the assets you want to interact with, transaction fees, and network congestion.
+- You can usually switch between networks within your wallet settings.
+
+## Funding Your Account
+
+To start using Mars Protocol, you'll need to fund your wallet with supported tokens that you want to lend or trade.
+
+### Depositing Funds into Credit Account
+
+**Buying Supported Cryptocurrencies**
+
+You can purchase supported cryptocurrencies on supported exchanges and transfer them to your wallet address.
+
+**Supported Wallet Transfer**
+
+To get started with Mars it is important to transfer sufficient funds to a supported wallet. If you have bought supported cryptocurrency on a CEX, you can withdraw funds to one such wallet.
+
+
+
+**Bridging from Other Chains**
+
+If you hold assets on other blockchains, you can bridge them to the Mars Protocol ecosystem using compatible bridges or IBC transfer.
+
+
+
+### Depositing Funds into your HLS Account
+
+HLS stands for High Leverage Strategies. It's a feature on Mars Protocol that allows users to leverage their staked assets (like stATOM or stOSMO) to increase their exposure without depositing additional collateral. It's a specialized credit account designed for specific use cases, offering significantly higher leverage than traditional margin accounts.
+
+### Funding Your HLS Account
+
+To fund your HLS account, you'll need to deposit the required asset (e.g., stATOM or stOSMO) into the specific HLS market. Here's a general outline of the steps involved:
+- 1. Check HLS Market Availability: Ensure the desired HLS market (stATOM or stOSMO) is active and accepting deposits.
+- 2. Transfer Assets: Transfer the required amount of stATOM or stOSMO to your Mars Protocol wallet address.
+- 3. Deposit into HLS Market: Navigate to the HLS section on the Mars Protocol platform and select the desired market.
+- 4. Approve Transaction: Approve the transaction to deposit your assets into the HLS market.
+
+
+
+## Security Considerations
+
+- Always double-check the recipient's address before sending funds.
+- Be aware of potential scams and phishing attempts.
diff --git a/docs/learn/tutorials/lending/lending-borrowing.mdx b/docs/learn/tutorials/lending/lending-borrowing.mdx
new file mode 100644
index 0000000..931bb2d
--- /dev/null
+++ b/docs/learn/tutorials/lending/lending-borrowing.mdx
@@ -0,0 +1,90 @@
+---
+sidebar_position: 1
+---
+
+import walletconnect from '@site/static/img/mars-v2/tutorials/9-lend-assets/wallet.png';
+import fundwallet from '@site/static/img/mars-v2/tutorials/9-lend-assets/fundwallet.png';
+import Lend from '@site/static/img/mars-v2/tutorials/9-lend-assets/lend.png';
+import Manage from '@site/static/img/mars-v2/tutorials/9-lend-assets/manage-lending.png';
+import Borrow from '@site/static/img/mars-v2/tutorials/15-borrow/borrow.png';
+import BorrowFunds from '@site/static/img/mars-v2/tutorials/15-borrow/borrow-funds.png';
+import Approve from '@site/static/img/mars-v2/tutorials/15-borrow/approve.png';
+
+
+# Lend and Borrow on Mars Protocol
+
+Mars Protocol offers a unique lending and borrowing platform that allows you to earn passive income by lending crypto assets or accessing liquidity by borrowing against the collateral. This document provides an overview of the lending and borrowing process on Mars, the benefits associated with each, and important considerations for borrowers.
+
+## How to Lend and Borrow
+
+### Lending
+
+1. **Connect your wallet:** Ensure your supported wallet (e.g., Keplr, Leap, Cosmostation) is connected to the Mars Protocol platform.
+
+
+
+
+2. **Fund your Credit Account:** When you fund your account, you also get an option to automatically lend.
+
+
+
+3. **Navigate to Earn Section and Lend:** You can also navigate to the Earn section and get an option to lend. Choose the specific cryptocurrency you want to lend from the available options (e.g., ATOM, OSMO, USDC).
+
+
+
+4. **Deposit funds:** Transfer the desired amount of cryptocurrency from your wallet to the lending pool. This action will lock your funds in the lending market.
+
+5. **Earn interest:** Once your funds are deposited, you will start earning interest on your lent assets. The interest rate may fluctuate based on market supply and demand.
+
+6. **Manage Asset**: Once you lend your asset, you get an option to manage your funds to lend more or unlend.
+
+
+
+## Borrowing
+
+1. **Connect your wallet:** Ensure your supported wallet is connected to the Mars Protocol platform.
+
+
+
+2. **Navigate to the Borrowing module:** Locate the borrowing section within the Mars Protocol interface.
+
+
+
+3. **Borrow Funds:** Choose the cryptocurrency you want to borrow and specify the amount. The borrowing limit will be displayed based on your collateral value.
+
+
+
+4. **Confirm and borrow:** Review the loan terms, including interest rates and liquidation risk. Confirm the transaction to proceed with the loan.
+
+
+
+Note: Interest rates for both lending and borrowing can fluctuate based on market conditions and utilization.
+
+## Benefits of Lending and Borrowing
+
+### Benefits of Lending
+
+- **Earn passive income:** Generate returns on idle assets.
+- **Support the ecosystem:** Contribute to the liquidity of the platform.
+- **Risk mitigation:** Diversify your portfolio.
+
+### Benefits of Borrowing
+
+- **Access liquidity:** Utilize your crypto assets without selling them.
+- **Leverage trading opportunities:** Increase your exposure to the market.
+- **Flexible financial management:** Optimize your asset allocation.
+
+A unique advantage that Mars offers is that your collateral deposited into the credit account can also be lent and you can earn interest on your collateral which will ultimately help you maximize your returns and reduce the interest rates on your borrowings.
+
+### Cautions While Borrowing
+
+While borrowing can be a powerful tool, it's essential to exercise caution.
+
+- **Health Score:** Maintain a sufficient collateral ratio to avoid liquidation.
+- **Liquidation Risk:** Understand the risks associated with borrowing and take appropriate precautions, if you borrow more than what your health score permits, your asset can be liquidated.
+- **Interest Rates:** Mars protocol works on a [two-slope interest rate model](https://docs.marsprotocol.io/docs/learn/mars-v2/interest-rates), pioneered by Aave and Compound. Monitor interest rates for both lending and borrowing to optimize your strategy.
+
+Mars Protocol's lending and borrowing platform provides a flexible and efficient way to optimize your crypto assets. It is important to understand the benefits and risks associated with each so that you can make informed decisions to maximize your returns or access liquidity as needed.
+
+
+
diff --git a/docs/learn/tutorials/trading/spot-margin-trading.mdx b/docs/learn/tutorials/trading/spot-margin-trading.mdx
new file mode 100644
index 0000000..adfdf5e
--- /dev/null
+++ b/docs/learn/tutorials/trading/spot-margin-trading.mdx
@@ -0,0 +1,120 @@
+---
+sidebar_position: 1
+---
+
+import MarginTrading from '@site/static/img/mars-v2/margin-trading.png';
+import OSMO from '@site/static/img/mars-v2/osmo.png';
+import OSMO45 from '@site/static/img/mars-v2/45-osmo.png';
+import TradeUSDC from '@site/static/img/mars-v2/trade-usdc.png';
+import HealthFactor from '@site/static/img/mars-v2/healthfactor.png';
+
+
+
+# Spot and Margin Trading on Mars Protocol
+
+Mars Protocol offers two primary trading modes: Spot and Margin. Understanding the distinction between the two and the innovative features that Mars offers is crucial for optimizing trading strategies and managing risk effectively.
+
+## Spot Trading
+
+Spot trading involves the immediate exchange of one asset for another at the current market price. Essentially, you buy or sell an asset with the funds you already hold in your wallet. There are two types of Spot Trading options available on Mars:
+
+**Spot Simple**
+
+- Focuses on trading volatile assets against stablecoins.
+- Offers a simplified trading interface for new users.
+- Supports trading pairs like NTRN/USDT, OSMO/USDC.
+
+**Spot Advanced**
+
+- Allows trading of any asset pair directly.
+- Provides flexibility for experienced traders.
+- Supports trading pairs like NTRN/WETH, ATOM/OSMO.
+
+### Key characteristics
+
+- Immediate execution of trades
+- No borrowing or leverage involved
+- Suitable for traders who prefer lower risk and a simpler trading experience
+
+### How it works
+
+- Connect your wallet with Mars
+- Select the trading pair (e.g., NTRN/USDT)
+- Choose a buy or sell order
+- Input the desired amount of the asset to buy or sell
+- Confirm the order
+
+Note: Mars trading view, by default, is set for Margin trading. If you wish to execute spot trades, you can turn off the Margin trading view.
+
+
+
+## Margin Trading
+
+Margin trading allows traders to amplify their buying power by borrowing funds against their existing assets. It can be applied directly for both Spot Simple and Spot Advanced. All the user needs to do is turn on the "Margin" toggle button. This enables larger positions and potentially higher profits but also comes with increased risk.
+
+### Key characteristics
+
+Use of borrowed funds to increase trading position size.
+Leverage magnifies both profits and losses.
+Requires a higher level of trading expertise and risk management.
+
+### Example of Margin Trading WBTC
+
+Let's illustrate margin trading with a WBTC example.
+Assume you have 1 WBTC worth $30,000. You want to increase your exposure to Bitcoin without investing additional funds. By using a 3x leverage, you can effectively control a position worth $90,000.
+
+### Benefits of Margin Trading
+
+- Amplified returns: Potential for higher profits on successful trades.
+- Flexibility: Ability to leverage existing assets to increase trading positions.
+- Short selling: Opportunity to profit from declining asset prices.
+
+### Risks of Margin Trading
+
+- **Increased risk of loss:** Leverage magnifies both profits and losses.
+- **Liquidation risk:** If your margin level falls below the maintenance margin, your position may be liquidated.
+- **Interest charges:** You'll be charged interest on the borrowed funds.
+
+## Credit Account: Health and Liquidations
+
+A [credit](https://docs.marsprotocol.io/docs/learn/mars-v2/credit-accounts) account is a virtual account used for margin trading, lending and borrowing, and the High Leverage Strategies on Mars Protocol. Mars has two types of credit accounts. One is for the general purpose of trading (Spot and Margin), lending, and borrowing and the other one is for High Leverage Strategies (HLS). It is also the fundamental leverage money Lego used by managed vaults (copy trading vaults) and perpetual markets. The credit account allows users to borrow funds against their existing assets (also known as leverage) to increase their trading positions. It also presents another opportunity to use all the deposited collateral in the credit account to open cross-margined perps positions. You can also view your total net worth in a given moment and it is calculated based on the value of the user's collateral and borrowed funds.
+
+For example, if you have a collateral of 10 OSMO in your credit account, you can trade up to 45 OSMO.
+
+
+
+
+
+Besides over-collateralization, you can also do cross-collateralization. For example, if you have deposited OSMO, you can also use USDC to buy any other asset, let’s say ATOM.
+
+
+
+### How it works:
+
+- Connect your wallet to Mars protocol, preferably Keplr.
+- Fund your credit account.
+- Start trading.
+- You can use deposited assets in your credit account to get leverage on your trade to increase your trading position.
+- But you will also need to manage your margin level to avoid liquidation.
+
+A crucial aspect of margin trading is maintaining a sufficient health factor. The credit account is a measure of your account's solvency.
+
+**Health factor is calculated as the ratio of your collateral value as per Liquidation LTV to your borrowed amount.** For instance, if your collateral liquidation value is $100 and $50 worth of borrowed funds, your health factor would be 2.
+
+If your **health factor** falls below a predetermined threshold (generally 1), your position is at risk of liquidation.
+
+This means the platform will automatically sell part or all of your collateral to repay the borrowed funds. To prevent liquidation, it's essential to maintain a healthy health factor by either increasing your collateral or reducing your borrowed funds.
+
+**For example** in the given image, if you've maximized your borrow limit on an OSMO position and the price of OSMO drops significantly, your health factor will decline. If it falls below the liquidation threshold, your OSMO holdings will be automatically sold to repay the borrowed funds.
+
+
+
+To avoid liquidation, it's essential to monitor your margin level closely and adjust your position as needed.
+
+## Looping with One Click
+
+Traditionally, DeFi platforms achieved leveraged exposure through a process known as **"looping."** This involved multiple steps, including depositing collateral, borrowing a stablecoin, swapping it for the desired asset on a different platform, and then repeating the cycle. This method was inefficient due to high gas fees and slippage.
+
+Mars Protocol simplifies this process with its **"looping with one click"** feature. By directly borrowing any asset against your collateral, you can increase your position efficiently. This streamlined approach saves time and reduces the potential for errors. However, maintaining a healthy credit account is crucial to avoid liquidation.
+
+Essentially, Mars Protocol's **margin trading is a more capital-efficient form of looping**. By offering direct borrowing and often higher LTVs, Mars provides a superior user experience as of CEX compared to traditional DeFi methods.
diff --git a/docs/overview/intro-to-mars-protocol/intro-to-mars-protocol-intro.mdx b/docs/overview/intro-to-mars-protocol/intro-to-mars-protocol-intro.mdx
index 7133087..653e17e 100644
--- a/docs/overview/intro-to-mars-protocol/intro-to-mars-protocol-intro.mdx
+++ b/docs/overview/intro-to-mars-protocol/intro-to-mars-protocol-intro.mdx
@@ -3,14 +3,68 @@ import TheVision2Url from '@site/static/img/the-vision2.png';
# Welcome to Mars v2
-Welcome Martians! 🔴
+**WELCOME TO MARS** 🔴
-**Mars is a credit protocol for the future: decentralized, self-sovereign, inter-chain, non-custodial, open-sourced, and community-governed.**
+Mars is the future of Defi, a complete suite you need to navigate the Web3 ecosystem: Lending, Borrowing, Spot Trading, Marginal Trading, Leveraged LPing, High Leverage Strategies, Copy-Trading Vaults, and Perps. Mars is focused on creating a Web3 ecosystem that is decentralized, self-sovereign, inter-chain, non-custodial, open-sourced, and community-governed with an aim to be the best place to trade on Leverage in Crypto.
-Like existing credit protocols, Mars' "Red Bank" facilitates overcollateralized loans with a two-slope interest rate model (similar to Aave or Compound). In addition, Mars brings outstanding improvements in Contract-to-Contract (C2C) lending, allowing for smart contracts that are whitelisted to borrow assets from Mars liquidity pools collateralized by the whitelisted contracts' own assets rather than being collateralized by Red Bank deposits. These credit lines power Mars’ credit accounts ("Rovers"), giving end users access to leverage when interacting with other Mars-compatible DeFi protocols' smart contracts.
+# Credit Account
-Any user can create their own Rover on an Outpost through that Outpost's Credit Manager smart contract. This Rover will initially be funded by the user's own tokens, which then may be used as collateral to borrow additional tokens into the Rover from the Red Bank. The Rover architecture resembles the “sub-account” experience familiar to users of centralised exchanges and enables Rovers to composably integrate with other DeFi mechanisms, whether such mechanisms are part of Mars (borrowing/lending on the Red Bank) or belong to other whistelisted DeFi protocols. Through Rovers and Vaults, users can cross-collateralise leveraged strategies with multiple assets counting toward a single liquidation LTV.
+A credit account is a virtual account used for margin trading, lending and borrowing, and the High Leverage Strategies on Mars Protocol. Mars has two types of credit accounts. One is for the general purpose of trading (Spot and Margin), lending, and borrowing and the other one is for High Leverage Strategies (HLS). It is also the fundamental leverage money Lego used by managed vaults (copy trading vaults) and perpetual markets. The credit account allows users to borrow funds against their existing assets (also known as leverage) to increase their trading positions. It also presents another opportunity to use all the deposited collateral in the credit account to open cross-margined perps positions. You can also view your total net worth in a given moment and it is calculated based on the value of the user's collateral and borrowed funds.
-Rovers effectively allow for a “rebundled” DeFi experience as users would be able to access their favourite tokens, farms, and protocols, using leverage, through the Mars credit account. This integrated experience represents the next evolution of DeFi, providing a user experience (UX) comparable to centralised exchanges (CEXes) on many important dimensions (such as speed, leverage, liquidation penalty, and asset choice), while gaining the potential to integrate key DeFi primitives and maintaining the advantages of decentralisation: self-custody and censorship-resistance.
\ No newline at end of file
+## 1. Lending and Borrowing
+Mars V2 helps you leverage your collateral to earn passive income on your holding through lending. Here’s how it works:
+
+- **Red Bank**: Red Bank is a secure platform for over-collateralized loans. You can deposit your assets and earn lending yield, or borrow against them using a flexible two-slope interest rate model similar to Aave or Compound.
+- **Credit Account**: Mars's credit account enables its users to borrow directly from its liquidity pools, using their own assets as collateral with great capital efficiency.
+
+In the traditional DeFi ecosystem, leverage is often over-collateralized, meaning you must deposit more than you can borrow. However, with Mars V2, this changes. You can now optimize your leverage with under-collateralization, allowing for more efficient and secure borrowing.
+
+## 2. Spot and Margin Trading
+
+Now, Mars v2 is beyond just lending and borrowing, it offers a comprehensive trading suite:
+
+**Spot Trading**: On Mars you can execute trades efficiently, swapping assets directly on Mars. You can enjoy the convenience of a centralized exchange experience while retaining the security and transparency of a decentralized platform.
+
+**Margin Trading**: Margin Trading helps you amplify your returns with leverage. You simply need to deposit assets as collateral and borrow additional funds to magnify your trading positions.
+
+**Traditionally, DeFi margin trading involved a complex process known as "looping."** This inefficient method required multiple steps, including depositing collateral, borrowing stablecoins, swapping for the desired asset on a different platform, and repeating the cycle. This process was time-consuming and costly due to high gas fees and slippage.
+**Mars Protocol changes this process by offering a streamlined credit account system.** Users can directly borrow funds against their collateral with just a few clicks, eliminating the need for complex looping. This approach significantly improves capital efficiency and user experience. Additionally, Mars often provides higher loan-to-value (LTV) ratios, allowing users to maximize their borrowing power.
+By offering direct borrowing and higher LTVs, Mars Protocol delivers a superior margin trading experience compared to traditional DeFi platforms.
+
+
+## 3. Perpetual Trading
+
+Mars v2 pushes the boundaries of DeFi by introducing Perps Trading. With **Perpetual Contracts**, you can trade contracts that track the underlying value of an asset without expiry. This allows you to amplify bets on price movements (up to 10x leverage) in both directions (going long or short). Mars Perps will be both cross-margined and cross-collateralized. Which in turn also opens up several advanced yield opportunities unique to DeFi on Mars.
+
+- Cross-margined: each Perp PnL can act as collateral against another Perp Position in the Credit Account.
+- Cross-collateralized: each asset in your account can act as collateral for perp positions, ranging from stablecoins to volatile tokens and even LP tokens.
+
+## 4. HLS (High Leverage Strategies)
+
+HLS is a specialized credit account designed to obtain leverage to amplify your staking position. These are special types of accounts that restrict users to specific collateral to be used with specific debt (borrowable assets). This restriction is in place to guarantee that both the collateral and the debt in the account are highly correlated, which in turn enables the protocol to allow high leverage in these special accounts (up to 10x) as the account liquidation risk is effectively contained and lower compared to holding other uncorrelated assets. Users can deposit their cryptocurrencies/tokens (e.g., stATOM, stOSMO, OSMO, or NTRN) into their HLS-specific credit account and borrow additional funds to increase their positions.
+
+It can be used for two purposes on Mars:
+
+### HLS for Leveraged Staking
+By depositing assets (e.g., stATOM, stOSMO) as collateral in an HLS account, users can borrow additional funds to increase their staking positions. This strategy amplifies potential rewards but also increases risk.
+
+### HLS for Leveraged LPing
+HLS accounts can also be used to enhance liquidity provision. Users can deposit LP tokens as collateral and borrow additional funds to increase their LP position. This can potentially boost earned fees but also magnifies the impact of impermanent loss.
+
+This unique feature can significantly amplify traders and stakers profits and rewards.
+
+It is just a beginning and as we move forward, multiple other features are expected to be integrated further amplifying the impact Mars will create.
+
+## Copy Trading Vault
+The Copy Trading Vault is a feature of Mars Protocol that allows users to invest in the trading strategies of experienced traders. It operates on a pool-based system where investors can allocate funds to a specific vault managed by a skilled trader. It’s important to note that a vault manager doesn’t have to be a person or an active trader, it could be a bot or even an immutable smart contract.
+
+### Key Benefits:
+
+- **Accessibility**: Provides opportunities for both novice and experienced traders to participate in the market.
+- **Diversification**: Allows investors to spread risk across multiple trading strategies.
+- **Professional Management**: Benefits from the expertise of experienced traders.
+- **Passive Income**: Enables investors to earn returns without active trading.
+
+By offering Copy Trading Vaults, Mars Protocol aims to democratize access to successful trading strategies and provide a user-friendly platform for investors to grow their portfolios.
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