TLDR: Automatic market maker to offers interest rate swaps. Introducing the CherryDai ERC20, an interest bearing token which represents fractional ownership in the liquidity pool plus any profits generated from offering the swaps. Interest rates offered in swaps are set algorithmically based off pool utilization to align demand with market rates.

Core design goals:

System users

A note on nomenclature

Defining a swap as long or short causes some confusion. In a bank’s treasury area, when they’re paying fixed and receiving Libor - they will say they’re “long” the swap. While a bond trader will think of a pay fixed swap as a synthetic short position - because the position will be profitable if bond prices go down. To minimize this confusion this document will stick to who pays or receives the fixed rate when possible. If a long and short term is required then we will use the treasury definition as:

Pooling liquidity and CherryDai