Pool Lending Process

Introduction to Lending

Once a pool is set up, you can offer incentives to your community to become liquidity providers by depositing stablecoins (e.g., USDC) into your pools, offering them a return on their investment. This process allows stablecoin holders to earn revenue with relatively low risk by providing secured loans to different borrowers.

How it works: Supplying liquidity into the Pool

To supply liquidity into the pool you are interested in, simply connect your wallet to the platform, navigate to the tab of the pool of your choice and select the supply/borrow button on the home page or navigate to the pool page and select supply in the top left corner from your screen. Choose the amount you would like to supply into the pool and sign the transactions from your wallet. Once this is done you can continuously monitor the rewards accrued on your position by going to the page of the pool where you made the deposits or by simply visiting the supplied tab.

When can I collect my rewards and capital?

At any time meanwhile the pool has enough funds to return your supplied funds and pay your rewards. Also, you are able to withdraw just a part decreasing your investing and claiming your rewards for the withdrawn amount. Or when a loan is liquidatable you can claim the collateral tokens of the position by liquidating it.

How are my rewards calculated once I deposit into a POOL?

The rewards on your pool deposits are calculated by considering two key variables:

• The interest rate of the pool: Reflected in the pool metric calculated on a per second basis, which allows for precise reward calculations based on the time your funds are in the pool. APY / (365 Days * 24 Hours * 60 Minutes * 60 Seconds).
• The utilisation ratio: Measures the effectiveness of the capital deposited in the pool. This metric reflects how much of the capital deposited in the pool is being utilised by active loans and is measured as (Borrowed Pool capital) / (Total supplied pool capital).