What is Lending & Borrowing?
Lending
You deposit a token into a shared pool and earn interest from borrowers.
Lending
You deposit a token into a shared pool and earn interest from borrowers.
Borrowing
You lock your token as collateral and borrow another token. Interest is charged on what you borrow.
Borrowing
You lock your token as collateral and borrow another token. Interest is charged on what you borrow.
Decentralized
Everything is handled by audited smart contracts; there's no single company in the middle.
Decentralized
Everything is handled by audited smart contracts; there's no single company in the middle.
How it will work on Inception (at launch)
Deposit to earn
Choose a supported token, deposit it, and start earning a variable rate.
Deposit to earn
Choose a supported token, deposit it, and start earning a variable rate.
Borrow responsibly
Choose the token to borrow; make sure your collateral is worth more than what you borrow.
Borrow responsibly
Choose the token to borrow; make sure your collateral is worth more than what you borrow.
Health factor
Your position has a "health" score; if markets move and your collateral drops, part of it can be sold to repay the loan (called "liquidation").
Health factor
Your position has a "health" score; if markets move and your collateral drops, part of it can be sold to repay the loan (called "liquidation").
Settlements
Transactions confirm in about 12 seconds; economic finality is typically 12–13 minutes.
Settlements
Transactions confirm in about 12 seconds; economic finality is typically 12–13 minutes.
Key risks to understand
Market swings
Prices can move fast; if your collateral value falls, you can be liquidated.
Market swings
Prices can move fast; if your collateral value falls, you can be liquidated.
Interest rates can change
Rates adjust with supply and demand.
Interest rates can change
Rates adjust with supply and demand.
Oracle risk
Prices come from data feeds; failures can impact positions.
Oracle risk
Prices come from data feeds; failures can impact positions.
Smart-contract risk
Audited code reduces risk, but cannot remove it completely.
Smart-contract risk
Audited code reduces risk, but cannot remove it completely.
Fees
Network fees are paid in INCP (EIP-1559).
Fees
Network fees are paid in INCP (EIP-1559).
Simple examples (for newcomers)
Earning example
Deposit Token A to earn interest. You can withdraw anytime if there's liquidity in the pool.
Earning example
Deposit Token A to earn interest. You can withdraw anytime if there's liquidity in the pool.
Borrowing example
Deposit Token A as collateral, borrow Token B. Keep your health factor comfortably above the minimum to avoid liquidation.
Borrowing example
Deposit Token A as collateral, borrow Token B. Keep your health factor comfortably above the minimum to avoid liquidation.
FAQs
Do I earn fixed or variable interest?
Usually variable; it changes with supply and demand.
Do I earn fixed or variable interest?
Usually variable; it changes with supply and demand.
Can I lose money?
Yes—through liquidation, price moves, or smart-contract issues.
Can I lose money?
Yes—through liquidation, price moves, or smart-contract issues.
Do I need INCP?
Yes—small amounts for network fees and interactions.
Do I need INCP?
Yes—small amounts for network fees and interactions.