Lend

How a pool works

Each market has its own USDC pool, and every loan in that market borrows from it. When you deposit, you receive lender shares. A share is a claim on the pool's value: the cash it holds plus everything its borrowers owe. As interest accrues, each share is worth more USDC.

To supply, open Lend, choose a market, enter an amount and approve in your wallet. Your position shows its current value and what it has earned since you deposited.

What you earn

Borrowers pay a rate that rises with how much of the pool is lent out:

All of that interest goes to the pool. Since only the lent-out part earns, lenders as a whole earn the borrow rate times the share lent out. The program keeps no cut.

Rates move whenever someone borrows, repays, deposits or withdraws, so a rate you see now is not a fixed return.

Withdrawing

You can withdraw up to the pool's idle cash at any time. Two kinds of dollars are not idle:

• Lent dollars come back only when borrowers repay or close their loans.
• Dollars in borrowers' bands belong to those borrowers until their loans settle. A band that sold collateral holds the borrower's dollars, not the pool's.

When most of the pool is lent, a large withdrawal may have to wait. High use also raises the rate, which gives borrowers a reason to repay.

What can go wrong

• A loss can land on whoever stays. The pool counts what borrowers owe at face value until a liquidation actually realizes a loss. A lender who withdraws while an underwater loan is still open leaves that loss to the lenders who remain. Prompt liquidation keeps this window short.
• A wiped-out pool closes. If a pool's value ever reaches zero, it refuses new deposits until the old shares have been withdrawn.
• NVDAx carries the issuer's powers. The token's issuer can freeze or seize tokens, including those in Taper's vault. See NVDAx and trading sessions.

Risks covers the rest, for borrowers and lenders alike.