Lending & borrowing
Earn on idle USDT, or unlock cash without selling your tokens.
Where your yield comes from
Everything in this market is denominated in USDT. You supply USDT; borrowers pledge tokens as collateral but they borrow and repay USDT, with USDT interest. The pledged tokens sit untouched in escrow and return to the borrower on repayment. As a lender you never receive tokens and never have to sell any.
The interest is paid by the borrower out of their own funds. Nothing is printed: lending moves USDT from people who want liquidity now to people willing to wait.
What a lender actually earns
The rate floats with utilisation — the share of supplied USDT currently lent out. An idle pool pays almost nothing; a busy one pays well. Lenders receive 85% of the interest, with 15% routed to insurance.
| Utilisation | Borrower pays | Raw tier earns | Insured tier earns |
|---|---|---|---|
| 20% | 6.5% | 1.1% | 0.8% |
| 50% | 13.3% | 5.6% | 3.9% |
| 80% (kink) | 20.0% | 13.6% | 9.5% |
| 90% | 260% | 199% | 139% |
Above 80% utilisation the borrow rate climbs very steeply. That is deliberate: it makes borrowing expensive exactly when lenders are running short of withdrawable cash, pushing borrowers to repay so the pool stays liquid.
Insured tier gives up 30% of its yield to a reserve that pays out first if a loan goes bad. Raw tier keeps the full yield and takes the full risk.
How much you can borrow
Three limits apply at once, and the smallest wins. All of them are proportional to real liquidity rather than fixed amounts, so borrowing capacity grows only as the market genuinely deepens.
Collateral is valued at the 90-second average price, not the spot price, so a brief price spike does not increase your borrowing power — you have to hold the price to benefit from it.