Lend and borrow
Lending
Offer USDC at the lowest rate you accept. What fills becomes notes; the rest comes back with your bond.
Place a lend order#
| Field | Meaning |
|---|---|
| Amount | USDC locked at commit. The app reveals the full amount. Minimum 1 USDC. |
| Rate | The lowest annual rate you accept, from 0.00% to 15.75% in 0.25% steps. |
| Bond | 1 USDC, locked with the order and returned when you claim. |
A lend order needs no price oracle and no collateral. Side and amount are public from the moment you commit; the rate is sealed until you reveal it.
How a lend order fills#
Lenders fill from the lowest rate upward. Orders below the marginal rate fill completely, orders at the marginal rate share what remains pro rata, and orders above it don't fill.
Everything that fills earns the clearing rate, not the rate you asked for. Ask 5.50% in an auction that clears at 6.25% and you earn 6.25%.
Claim#
After clearing, choose Claim notes on the desk or in Portfolio. One instruction:
- mints notes equal to the filled USDC, one note per USDC,
- returns the unfilled USDC,
- returns the 1 USDC bond.
Lenders have no claim deadline. A claim made after the auction settles still mints your notes, and they redeem against the same pool.
What notes pay#
When every loan in the auction is resolved after maturity, the auction is finalized and each note redeems for its share of what the auction recovered. If every borrower repays, that is principal plus interest at the clearing rate.
| Lent and filled | Rate | Term | Redeems for |
|---|---|---|---|
| 100,000 USDC | 6.25% | 28 days | 100,479.452055 USDC |
When a note pays less#
- A borrower doesn't take the loan. The reserved USDC stays in the pool and returns to notes without interest.
- A loan is liquidated below its debt. The shortfall is written off and shared by every note of that auction.
Neither case touches other auctions. See Notes for the redemption arithmetic and Risks for the rest.