Lending dApp Description

Lending dApp allows the user to lend their tokens to other users and receive income in the form of APR in the equivalent of the lent token. The tokens that users lend in the Lending dApp are used for loans in the Borrowing dApp (for more details on the functionality of this dApp, see the Borrowing dApp Guide, which will be published soon). It is also worth mentioning that the user can withdraw their tokens at any time.

Terminology

  • APR is the annual percentage rate that the user receives as a Reward from tokens lent to other users. This rate is subject to change if other users also add their tokens to the offer: the larger the offer of tokens in the pool, the lower the APR, and vice versa. When using the Borrowing dApp (for more details, see the Borrowing dApp Guide, which will be published soon), APR is changed in the same way.
  • Profit is an indicator that reflects the Reward for participating in the offer, i.e. lending tokens to other users. This Reward is automatically accrued to the wallet connected to the Platform when the user withdraws all his/her tokens.
  • Liquidity is the liquidity of a token (total number of tokens in the offer). This indicator is calculated according to the following formula:

How the Lending dApp Works

If the user has a certain amount of a particular token (e.g. ETH) and wants to participate in the offer (lend their tokens to other users), they need to add ETH to the pool formed by the users of the Platform. Then, the only thing left is to observe the APR (since it may be subject to change), which is the basis for calculating and accruing the Reward (Profit) to the user. The Reward is accrued in the token that was added to the pool (in this case, ETH).

How to use the Lending dApp?

Getting Started with the Lending dApp

In order to lend tokens to other users, the user needs to go to the “dApps” section of the Platform (Figure 1).

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  • Lend;
  • P2P.
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  • Liquidity — The liquidity of the token (total number of tokens in the offer; see the “Terminology” section of this guide).

Adding Tokens to the Offer

To add tokens to the offer, the user needs to click on the Approve button — once you hover the cursor over this window, the button appears (Figure 6).

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  • Interest APR — the annual rate at the moment;
  • Balance — the token amount available for use;
  • Window for entering the required token amount (Figure 8).
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  • Profit — the user’s Reward amount;
  • APR; (see the “Terminology” section of this guide).
  • Liquidity (see the “Terminology” section of this guide).
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  • Interest APR — the annual rate at the moment;
  • Balance — the token amount added to the offer;
  • Window for entering the token amount required for withdrawal.
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