Chapter 8: Thatcher’s Reservoir

Published in

Huckleberry DEX

5 min readDec 30, 2021

Greetings my Huckleberry friends,

In my previous life, I had the pleasure of meetin’ and learnin’ from all sorts of different characters. These people inspired me to make Huckleberry a brand-new kind of community driven AMM crosschain DEX where every single feature — from $FINN’s Passive Sailin’ rewards to Tom’s House — creates value for each and every one of you.

One of the most impactful people in my life was the one and only Judge Thatcher. I remember he always fought for my well-bein’ and safety, and even helped ol’ Tom and I invest the money we earned goin’ on Adventures and Excursions. With Judge Thatcher in mind, I have somethin’ a little different to share today. It is with great excitement that I can share that Huckleberry’s highly-anticipated decentralized lendin’ platform — called Thatcher’s Reservoir — has officially launched!

The launch of Thatcher’s Reservoir marks the dawn of a new era for Huckleberry as Huckleberry becomes the first platform to offer a fully-fledged, in-house DEX and Lendin’ protocol on Moonriver. Thatcher’s Reservoir is based on both the Compound and Banker Joe protocols.

What can you do with Thatcher’s Reservoir?

Thatcher’s Reservoir offers everyone the ability to deposit or borrow against whitelisted assets. Combined with Huckleberry’s decentralized exchange, it enables the deployment of a variety of high-level DeFi strategies — includin’ single asset yield, leveraged longs, leveraged farmin’, and open short positions — on Moonriver. A few basic examples:

Rather than just holdin’ your favourite tokens in your wallet, Thatcher’s Reservoir lets you lend your tokens to earn yield without the risk of Impermanent Loss.
Usin’ your deposited tokens as collateral, Thatcher’s Reservoir lets you borrow other tokens to add leverage to your portfolio
If you expect a token to decline in value, Thatcher’s Reservoir lets you create an open short by borrowin’ and sellin’ the token

How does Thatcher’s Reservoir work?

Depositin’

Depositin’ tokens is akin to turnin’ yourself into a lender. When usin’ Thatcher’s Reservoir, you need to first deposit one of the whitelisted tokens. When you deposit tokens, you will receive a receipt in return. Meanwhile, your deposit continuously earns interest over time as your tokens are lent to borrowers!

For example, if you deposit $MOVR, you will receive a receipt (called trMOVR) in return. trMOVR serves as proof of your deposited $MOVR. When you want to withdraw your $MOVR, all you need to do is turn in your receipt (trMOVR). By doin’ so, you will receive your original deposited $MOVR as well as any extra $MOVR you earned via accrued interest.

Borrowin’

Besides depositin’ assets, you can also borrow against that asset if you’ve enabled its use as collateral.

For example, if you deposited $MOVR, you can then borrow other assets like $DOT against it. The amount of $DOT you can borrow is determined by $MOVR’s collateral factor. Let’s say that $MOVR has a collateral factor of 60%. This means that, if you supplied 1 $MOVR, you can borrow 0.6 $MOVR worth of $DOT.

Thatcher’s Reservoir also has several safety measures in place to stop would-be nefarious actors from takin’ actions that would cause them to exceed their borrowin’ limit.

Repayin’

Repayment is a transfer of tokens from the borrower to the token market. Thatcher’s Reservoir makes the process of repayin’ the tokens you borrowed as simple as can be! If you only pay back a portion of your borrowed tokens, your borrowed balance will continue to accrue interest. In other words, as long as you are borrowin’ tokens, your borrow balance is accruin’ interest.

Other Important Information

Liquidation and other risks

A moment of sobriety, if you’ll allow it. It is important to realize that lendin’ protocols like Thatcher’s Reservoir do carry some risk. For instance, borrowers risk liquidation when they are unable to keep a leveraged trade open. This, in turn, places lenders at risk of bein’ unable to withdraw their deposit.

When a borrower’s borrowin’ balance exceeds their borrowin’ limit (called a shortfall position), a portion of their collateral will be liquidated to return their account to good standin’. In other words, when your account is in a shortfall position, a liquidator can liquidate your collateral to return your position to a balanced position. This is standard operatin’ procedure for decentralized lendin’ platforms, but it’s important for each and every drift to be aware of how everythin’ works.

Price Oracles

Thatcher’s Reservoir uses decentralized price feeds provided by market-leadin’ oracles for all whitelisted assets. There is one important exception. To ensure the fidelity and integrity of $TOM, Thatcher’s Reservoir uses a centralized oracle. As a result, $TOM cannot be used as collateral.

Audits

While Thatcher’s Reservoir is based on the Compound and Banker Joe protocols, both established lendin’ protocols, Thatcher’s Reservoir itself if not yet audited

What assets are available?

At launch, the followin’ assets are whitelisted: $MOVR, $USDT, $USDC, $DOT, $MIM, $BTC, $ETH and $TOM. More tokens will be added in the future, based on community feedback. Please note that on Moonriver, several of these assets are wrapped tokens.

Wider Significance for the Huckleberry community

Leveragin’ both the DEX and the lendin’ platform helps all Huckleberry users maximize earnings while minimizin’ risk.

Receive Protocol Fees as $TOM holder

A percentage of Thatcher’s Reservoir protocol fees, specifically those earned from borrowin’ interest and liquidations, are donated to all $TOM holders. This is similar to how a portion of Huckleberry’s DEX fees are donated to $TOM holders and means that the pool of $FINN $TOM will grow faster than ever. $TOM is more valuable than ever as $TOM now continually grows thanks to Passive Sailin,’ a portion of Huckleberry DEX fees and a portion of Thatcher’s Reservoir’s protocol fees!

Benefits of depositin’ tokens into Thatcher’s Reservoir

No impermanent loss.
Protect the assets you want to hold.
Earn interested on deposited tokens.
Build $TOM’s value. Thatcher’s Reservoir protocol fees are donated to Tom’s House.

Benefits of borrowin’ tokens from Thatcher’s Reservoir

Execute expert DeFi strategies on Moonriver includin’ leveraged longs, leveraged farmin’, and short positions.
Access a variety of tokens without riskin’ the tokens you want to hold.
Build $TOM’s value. Thatcher’s Reservoir protocol fees are donated to Tom’s House.

Prior Writin’

Let the river guide you

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