Boosted Yield (CDM)

The Credit Delegation Module (CDM) lets you put idle SomniaLend collateral to work earning Arenas yield. Instead of depositing stablecoins directly, you delegate the borrowing power of your SomniaLend position, and the CDM borrows against it to fund an Arenas pool.

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How it works

The CDM automates the borrow-from-SomniaLend, deposit-to-Arenas strategy in one place:

1. You keep collateral on SomniaLend, where it keeps earning its base supply yield.

2. You delegate borrowing power to the CDM using the standard credit-delegation interface.

3. The CDM borrows against that delegated power and deposits the liquidity into an Arenas pool.

4. While the pool's yield exceeds the borrow rate, you earn the spread as bonus yield, on top of the base supply yield you keep.

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Credit delegation (the mechanism it builds on)

The CDM uses SomniaLend's native credit delegation, with nothing forked or reimplemented:

• You (the delegator) call approveDelegation on the relevant VariableDebtToken, authorizing the CDM (the delegatee) for an amount.

• The CDM calls borrow on the Pool with your address as onBehalfOf.

• SomniaLend's own rules still apply: the eMode category must match, and a borrow that would push your health factor below the liquidation threshold reverts. Your collateral must be supplied before the borrow executes.

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Contract address

On Somnia (chain 5031):

Name	Address
Credit Delegation Vault Factory	0x7d16B631B2134D48Fa6be13445191023dbF8D557

Your delegation runs through a vault deployed for you by this factory. Addresses for the liquidity layer are published by SomniaLend; see docs.somnialend.finance.

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Risk

This is a leveraged position. The borrowed amount accrues interest, your collateral remains subject to SomniaLend's health-factor and liquidation rules, and the Arenas financing itself carries credit risk. The bonus only holds while pool yield exceeds the borrow cost. See Risks.

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SomniaLend is an external protocol, not operated by Arenas. Arenas uses its publicly available liquidity and the standard credit-delegation interface. It is one optional liquidity source, and it sets its own market parameters and risk rules. See docs.somnialend.finance and app.somnialend.finance.