Attribution and Copy Rights
Lendf.me is a project started off by the community, with grant from dForce Foundation.
Lendf.me comprises of the following modules: Money Market Contract (based on Compound V1), Interest rate models, oracle, liquidator, liquidation monitor, market dashboard and front-end UI&UE.
All the codes (except otherwise specified) of this project are open source and are licensed under MIT License, hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software.
THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
What is Lendf.Me?
Lendf.Me is a dForce ecosystem project and a money market protocol where allows instant accessibility and liquidity by matching supply and borrowing of any ERC20 compatible assets. You are able to deposit stablecoins to earn yield or borrow supported assets with crypto collaterals. All crypto loans will run through automatically-executed smart contracts, removing the need for go-betweens and associated costs.
** IMPORTANT: Please NEVER transfer any cryptoassets to the contract address of Lendf.Me directly, which will cause a permanent loss of your cryptoassets that can NOT be recovered. Users will be responsible for all the losses thereof. You can’t be too careful to interact with DeFi protocols! **
Which assets are available on Lendf.me?
We currently support multiple stablecoins and cryptoassets including USDT, USDx, Wrapped ETH, Wrapped BTC, with more stablecoins and staking assets on the way. All assets on Lendf.me have a shared liquidity pool to facilitate instant loan matching. We want to give users a wide range of choices for everyone to participate and yield massive savings and efficiencies at ease.
What can I do with Lendf.me?
Supply crypto-assets to:
Earn yields on your holdings. Please note interest rate are algorithmically adjusted based on market supply and demand of the selected asset.
Generate better yield with your idle fiat dollar, by converting your fiat into stablecoins (USDx or USDT for now, with more to come soon) and deposit into Lendf.me.
Borrow stable-assets to:
Access working capital without selling ETH or BTC when the price is low.
Maximize your investment returns by margin trading.
Can I supply and borrow simultaneously?
Yes. But please also note supply and borrowing are exclusive choice to the same asset, which means, users can supply one type of asset as collateral and take out loan(s) of different type(s). For example, users can supply wETH as collateral to take out a USDT loan. He/she can also deposit USDx to earn yields at the same time.
Where is my crypto-asset stored?
Lendf.me is a decentralized money market protocol utilizing smart contracts to facilitate crypto lending. Only users have access and full control over their funds and we do not hold your asset – this is how decentralized finance works. Please make sure to keep you private key safe as we are unable to retrieve your private key, access your account, reset your password or reverse transactions. It would be extremely upsetting if you lost your private key as you will permanently lose access to your fund.
How do you deal with loan default?
Borrowers need to collateralize a minimum of 125% crypto-assets in a smart contract to borrow a loan. If the cover ratio falls below 125% and there is no top-up of collateral or repayment, margin call will be triggered, anyone in the market can help you to repay the loan and get the corresponding collateral at 10% discount, so your collateral ratio can be restored back to 125%. Given we only deal with assets and collaterals with robust market liquidity (i.e ETH and wrapped BTC)，we believe 10% liquidation discount and 25% price buffer is sufficient to deal with default risks.
How do you source your price feeds?
Like many other DeFi projects, we aggregate real-time price from a group of Exchanges. We mediate those price feeds from various sources and publish the mediated one onchain periodically. In the near future, we will also put forward a new incentive structure for the community to participate in providing oracle services.
Fee rates at Lendf.me?
Asset supplying is free and there will be 0.01% origination fee when loaning asset from Lendf.me.
How do I contribute to Lendf.me?
As an eco-system project of dForce Network, DF token holders have the voting right in asset integration and adjustment, interest rate model, transaction fee adjustment, and etc.
Who paid out interest to asset suppliers?
When an investor supplies a selected cryptoasset to Lendf.me, it gets deposited into a global lending pool, where borrower can then borrow the same asset directly from the pool and borrower will need to pay interest for borrowing the asset. Interests will be distributed evenly to all investors supplying the borrowing assets to the pool subject to utilization ratio of the borrowing asset.
How is interest calculated?
Borrow APR = 0.05*UR+0.05*UR^2+0.05*UR^4+0.1*UR^32Supply APR = Borrow APR*UR*DiscountUR = Total Borrows/Total Supplies
For Other Stable assets,
Borrow APR =0.06*UR+0.05*UR^4+0.03*UR^8+0.12*UR^32, if(0<=UR<0.75);0.06*0.75+0.05*0.75^4+0.03*0.75^8+0.12*0.75^32, if(0.75<=UR<=0.85);0.06*UR+0.03*UR^8+0.05*UR^12+0.12*UR^32, if(0.85<UR =1)Supply APR = Borrow APR*UR*DiscountUR = Total Borrows/Total Supplies
For Main assets,
Borrow APR = 0.2*URSupply APR = Borrow APR*UR*DiscountUR = Total Borrows/Total Supplies
Interest rates will be algorithmically derived based on market demands (yields-providing) and supply of assets (asset-providing) in every block (approximately 15 seconds, depending on time for production of blocks on the Ethereum).
Can you elaborate the gap between saving rate and borrowing rate?
Total supply * Supply APR = Total borrowing * Borrow APR
Deposit must be of greater value than loan demand so that investors can withdraw fund at any time (adequate liquidity), which produces disparity between supply APR and borrowing APR. On Lendf.me, we charge no fees for asset supplying (providing assets to the global pool) and 0.01% service fee for each loan origination (paying interests to suppliers), which will be accrued in a smart contract as risk mitigator (insurance pool).
Can I withdraw my fund at any time?
The availability of fund for withdrawal is subject the availability of fund at the time of withdrawal request, which is the utilization ratio. The higher the utilization ratio, the higher the supply/borrowing rate and the more incentive people depositing into the lending protocol. However, there could be extreme case of liquidity drain, where the utilization ratio is pushed to close to 100% and interest rate pushed to 25%, people will be incentivized to provide assets into the protocol given such high rate.
How can I earn interest on my crypto holdings?
Users can earn passive yields on your holdings crypto-assets by simply depositing them to Lendf.me. Your asset will be locked in a smart contract for automated loan matching.
Is there any investment threshold?
The answer is No. Anyone can participate with the same level of access, independent from your location, status, wealth, appearance without validation of a central party.
How can I get a loan?
To borrow a loan, you first need to supply collateral into the protocol. It can be done in a few clicks, removing the complexity of KYC and high cost associated with it.
Can I pay off or refinance my loans at any time?
Yes. Investors can refinance or pay off your loans (in portion or in full) at any time. Interest will be calculated through the date of loan termination.
What is the collateralization ratio?
Liquidation will be triggered when the value of your collateralized assets declined under 125% of your outstanding loans. For example, to borrow a $100 crypto loan, you need to provide at least $125 collateral.
What is DSR?
The Dai Savings Rate (DSR) is a variable rate of accrual earned by locking Dai in the DSR smart contract. Dai holders can earn savings automatically and natively while retaining control of their Dai. The DSR smart contract has no withdrawal limits, deposit limits, or liquidity constraints.
Why we integrate DSR and what does it mean?
Integrating with DSR, will allow DAI holder to automatically enjoy the benefits of DSR while interacting with Lendf.Me, i.e it allows DAI holders to earn additional interest from Lendf.Me protocol along with DSR interest. Lendf.Me integrates DSR functionality via CHAI protocol.
What is CHAI?
CHAI is by far the most widely adopted protocol integrating DSR, aka a DSR token wrapper. It is launched by chai.money and audited by Trail of Bits (review report here).
Explain further, CHAI is an ERC20 token representing a stake in Maker’s Dai Savings Rate (DSR). Chai.sol, the token’s smart contact, deposits your DAI into the DSR and issues you CHAI tokens which can be stored, transferred, traded, and later redeemed for the underlying DAI plus any interest earned.
Why extra step is required to convert DAI to DSR and vice versa?
Similar to ETH/WETH, consider DSR token (CHAI) as a pass when integrating DAI on Lendf.Me, users need to go through the pass while supply/withdraw/borrow/repay.
What is the interest rate curve of DAI on Lendf.Me?
By integrating DSR, the interest rate curve of DAI is a combination of DSR rate and the interest rate curve of fiat-stablecoin on Lendf.Me. DAI’s interest rate curve itself is determined both by DSR rate and unitization rate of the DAI liquidity pool on Lendf.Me.
Why I have some CHAI sitting in my wallet?
In the event you fail to complete all steps facilitating the conversion of DAI, you may find some CHAI returned to your wallet, you could reinitiate the process make sure you have successfully completed the supply or borrowing of DAI.
What will happen in case of loan default (liquidation)?
When the value of your collaterals falls below 125% of your outstanding loans, liquidation will be triggered and part of your collateralized asset will be auctioned to repay your loan. Please note 10% penalty of the value of auctioned assets will be charged to ensure timely payback. So, we strongly recommend you to exercise caution and carefully monitor your debit position to avoid liquidation, by refinancing or terminating your loans in time.
How can I participate in liquidation?
Monitor Web Tool (for retrieval of real-time loan information and execution of liquidation): https://monitor.lendf.me/
How to integrate with Lendf.me?
You can find how in https://github.com/Lendfme/interfaces
You can find APIs in https://github.com/Lendfme/docs