search

Lender

hashtag
Lender Journey

A Lender supplies liquidity to a Strategy Vault’s associated lending market and earns yield funded by strategy performance. This role is designed for participants who want exposure to strategy-generated yield without direct exposure to strategy drawdowns.

Lenders do not own the strategy.

hashtag
1. Discovering Lending Markets

A Lender begins by browsing available lending markets, each of which is associated with a specific Strategy Vault.

For each lending market, lenders can view:

  • The underlying strategy powering the market

  • Current lender APY

  • Total lending liquidity

  • Borrow utilization

  • Risk parameters enforced by the protocol

Lenders choose markets based on strategy performance and risk profile, rather than borrower demand alone.

hashtag
2. Supplying Liquidity

To participate, the Lender supplies liquidity into a vault-specific lending market.

Upon supplying:

  • Liquidity is added to the lending pool

  • The lender becomes eligible to earn yield

  • No strategy shares are issued

Lender funds are never deployed into the strategy vault itself.

hashtag
3. Yield Generation

Lender yield is funded by strategy performance.

Specifically:

  • 30% of net strategy profits are routed to the lending market

  • This allocation is used to generate lender APY

  • Yield exists only when real strategy profits are generated

There is no interest charged to borrowers.

hashtag
4. Risk Exposure & Protection

Lenders are not exposed to:

  • Strategy drawdowns

  • Strategy execution losses

  • Vault equity volatility

Lender exposure is limited to:

  • Lending pool parameters

  • Borrower collateralization and liquidation mechanics

  • Protocol-enforced safeguards

If strategy performance declines:

  • Lender APY may decrease

  • Borrow capacity may shrink

  • Lending markets may contract

Lender principal is not directly affected by strategy losses.

hashtag
5. Withdrawing Liquidity

Lenders may withdraw supplied liquidity subject to lending market conditions.

Upon withdrawal:

  • Liquidity is returned to the lender

  • Accrued yield is included

  • No interaction with strategy vault shares occurs

Withdrawals do not impact strategy vault accounting.

PreviousStrategy LPNextBorrower

Last updated