How lending and earning works

The idea

People who borrow against their stock tokens pay interest. That interest goes to the people who supplied the dollars. The Lend page lets you be one of those suppliers.

You need the dollar token in your wallet first: USDC or USDG on Solana, USDG on Robinhood Chain. The app does not swap or bridge for you.

The steps in the app

1. Open Lend and choose the dollar token if there is more than one.
2. Look at the Supply APY and the pool details on the right.
3. On the Supply tab, enter an amount (or press Max for your wallet balance) and press the button.
4. Check the transaction in the review box and sign in your wallet.
5. To take dollars out, use the Withdraw tab. Max is what you can withdraw right now.

On Solana

You supply dollars to a Kamino Lend pool in the xStocks Market. The page shows the pool's total supplied, how much is borrowed, utilization, free liquidity and the borrow APY.

• Your dollars share one position. Dollars you supply sit in the same Kamino position as any loan you open here, so they also count as collateral for that loan. If you have a loan open, withdrawing supplied dollars lowers your health, and the app warns you.
• Supply APY comes from Kamino's API. If it is not available, the app estimates it from the rate curve (borrow rate x utilization, after the protocol's take rate) and says "estimated from the rate curve".
• Withdrawals depend on free liquidity. Your dollars are lent out, so you can only withdraw what is not currently borrowed. When a pool is more than 90% borrowed, the page warns you that withdrawals can wait until borrowers repay or new dollars arrive.

On Robinhood Chain

You supply USDG to a Morpho vault. A vault is a smart contract run by a curator, which lends the dollars out in Morpho markets, including markets where people borrow against stock tokens. You receive vault shares that grow in value as interest builds up.

• The vaults. The app has a fixed list: Steakhouse USDG (curator Steakhouse Financial) and Yearn Stonk USDG (curator Yearn). The Lend page shows one vault at a time, the first one that has a live rate. The other stays on the list so you can still withdraw from it.
• Supply APY is the net rate that Morpho's API reports for the vault, and it is variable. The app only shows a vault when it has a live rate for it. If none has one, the Lend page says there are no lending pools right now.
• Steps. Supplying takes up to two signatures: an approval for the exact amount (skipped if already in place), then the deposit. Withdrawing takes one. Withdrawing everything redeems all of your shares.
• Withdrawals depend on liquidity. You can only withdraw what the vault can pay out at that moment. The page shows "Withdrawable now".
• Check on the chain. Before any deposit, the app reads the vault on the chain and makes sure its asset really is USDG. If not, deposits are blocked.

The numbers on the page

• Supply APY: the yearly rate you earn, including compounding, at today's rates.
• Projected yearly earnings: your supplied amount (plus what you are about to supply) times the Supply APY. It is a snapshot of today's rate, not a promise.
• Total supplied, borrowed, utilization, free liquidity: how busy the pool is. A busy pool usually pays more, and is also harder to withdraw from.

What is not guaranteed

The rate changes with demand. Withdrawals can be delayed when liquidity is low. The protocols and vaults are smart contracts, and smart contracts can have bugs. Dollar tokens can lose their peg. Read the risks before you lend.