🪶Lending Q&A
What should I use for lending?
Only WETH .
Which NFT collection is currently supported on xBank?
There is a whitelist for supported collections for xBank's private beta release. For further information, please refer to our social medias.
The priority of money matching
xBank will generate a lending offer table for batch lending from your conditions where all money demands that match the table will be lent to borrowers.
In the case of the same money conditions, xBank will sort money offers according to interest rate and the payment plan of the borrower will be matched with best offers fristly.
How to decide the interest rates of lending
The interest rates are determine by lenders. You will be able to generate a preferable money offer table by modifying following properties of the interest rates: maximum interest rate, sensitivity to time and sensitivity to LTV.
When does interest start accruing？
Starting from the creation of the loan / payment plan. The minimum unit time of interest accruing is 1 day.
How to calculate the interest return?
where
i = interest for each payment （Annual Percentage Rate / 365 * days between each repayment）
n = number of payments
What happen if the borrower prepay his payment plan?
The borrower is allowed to prepay his payment plan under the condition that he has paid off the interests accrued during his payment plan. After the prepayment has been made, the principal and interest will be transferred to your address and your supply caps will be recovered for supporting further lending.
After the LP creates a lending offer, what happens if they transfer the WETH out of their wallet?
The protocol will automatically update the status of the lending offer according to the balance in the LP's wallet, marking loan offers that have insufficient funding will be marked as invalid. When buyers use BNPL, they won't be matched with lending offers that have already been invalidated.
Understanding Allowances in xBank: A User Guide
Authorization of Allowance: Before you can lend any assets, you need to authorize an allowance. This is a one-time setup that gives permission to our platform to access your funds for lending purposes.
Usage of Allowance for Lending: Every time a user borrows from you, the agreed amount will be deducted from your pre-authorized allowance. This system allows for a seamless lending experience.
Allowance Decreases with Lending: Please be aware that as funds are lent out, your allowance will decrease accordingly. It's essential to note that the allowance does not automatically replenish, even if the borrower pays back the loan.
Need to Update Allowance: If you wish to continue lending once your allowance has been depleted, you will need to update it manually. This can be done through our platform's user interface, where you can easily adjust the allowance to fit your lending needs.
In summary, the allowance is a control mechanism that gives you the power to manage how much you're willing to lend, but it requires your attention to update and maintain. It's not a set-it-and-forget-it feature. If you have any questions, do not hesitate to contact us.
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