To create a Lending Pool, a lender should go to the Liquidity Pools page of the protocol and click 'Create'. Select the collections that will be allowed to borrow from pool and set unique terms for each collection, defining risk-reward strategy.
Oracle: A pricing system that tells the pool the value of the collateral. By default, we recommend using the 24-hour TWAP Reservoir floor pricing Oracle, as a reliable and accurate data source. The lender can also set a "Fixed Value" to determine collateral value. However, Fixed Value must be updated manually to keep up with the market. In the future updates, custom oracles will be allowed to use together with Lending Pool.
APR: An interest rate applied to a loan when it is lent against a specified collection. For example, BAYC is a stable collateral with a large competitive lending market, lenders should not charge a high APR if they want their liquidity to be utilized.
LTV ratio: A maximum percentage of the Floor Price/Fixed Value that can be obtained by the borrower. For example, CryptoPunks have a very stable floor price, so lenders can offer a higher LTV ratio without taking high risk of default, while GoblinTown (no offence, grrr) should be considered a more volatile collateral and therefore should be risked cautiously.
Note: Sodium does not enforce liquidations due to the price movements, the loan is only considered defaulted if the borrower cannot repay on time (30 days max), potential 30-days devaluation should be considered while setting the LTV ratio (risk level).