🪶Lender Guide
Earn Risk-Free Interests or Get NFT at Nice Discounts
How to lend or become a liquidity provider?
Navigate to "Lend" page and pick up a collection you would like to support to create a lending offer of your own. By setting your lending offer conditions and approve a certain amount wETH quota, your lending offers will start to earn interests when your wETH is actually being borrowed by buyers.
Notice that when you successfully create your lending offer:
Some/All of your approved wETH will be sent from your address to support buyer's transaction; lendings will fail if there is no enough wETH in the address.
Your lendings are protected by collaterals staked in the vault.
In a default case, you will get the collateralized NFT at a discount price (according to the maximum collateral ratio and maximum single loan amount your set up)
How to earn money interest?
You will be setting lending offer conditions while providing liquidities for collections; Once one of the lending offers is successfully matched with a payment plan from a borrower, the borrower will pay the interests according to your lending offer conditions. A typical money condition includes:
NFT collection requirement: the borrower's transaction should be related to the collection you want to support
Loan to Value (LTV): the percentage of the full amount you want to cover in a borrower's payment plan. The LTV will be presented as payment plan amount / real-time floor price
Loan period: the time coverage of the payment plan
Interests (APR): the annual cost of borrowing money represented as a precentage
What if the borrower failed to make a repayment?
Your lendings are backed by the collateralized NFT asset. In the default case, you will be able to claim the liquidated NFT asset with no additional cost except the gas fee.
Is there a minimum or maximum amount to supply?
There is no maximum requirement on lending approve amount. The min of lending approve amount = the floor price of collection * LTV you set for the collection
How to find my lendings
Navigate to "Lend" -> "Loans" to take a look of all lendings related with you which are categorized as following types:
Ongoing
Payout Lendings
Default and Liquidated
How do I withdraw my lendings?
Navigate to "Lend" -> "My Offers" for managing your lending offers. Ongoing lendings will not be able to withdraw immediately until repaid by borrowers. xBank will be able to support loan transition in the future for providing better liquidity for LP.
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