SRWA Lending is a overcollateralized, flexible type of lending...
Every time the user interacts with the protocol (Deposit, Borrow, Withdraw, Repay), many things are happening in the background in order for the protocol to work as intended.
The whole process can be described in three basic steps that are done on every interaction:
Validation - every interaction has to be validated to check if it can be done. More details on that can be found in the description of basic operations below. Calculation - every time the user interacts with the protocol, set of calculations is being done, in order to for it to function as intended. Those calculations include pool utilization, borrow rate, borrow APR, accrued interest and pool reserves. more details can be found in section of the docs. Update - when the protocol has all of the relevant calculations ready, then it can update the SRWA Badge with the users current deposit and borrow states, as well as the Lending Protocol total deposits, borrows and reserve states.
After that the protocol waits for the next interaction to go through the process again.