Lender's guide
How to lend on FixedLend.
This guide will walk you through the process of lending your assets on the platform. All lending activities are managed on the Earn page: https://fixedlend.com/earn.
Step 1: Deposit Your Assets
Before you can lend, you must deposit assets into the FixedLend protocol.
Navigate to the Earn page.
Click the "Deposit / Withdraw" button.
Select the asset and the amount you wish to deposit and confirm the transaction.
Once your assets are deposited, you can choose between two lending strategies.
Option A: Execute a One-Time Loan
This option is for executing a single, non-renewing loan. You are "taking" the best available offer from the market that matches your criteria.
Select the "One-Time Lend" tab.
Enter your desired loan parameters, such as the duration.
The interface will automatically find the most advantageous borrower offer currently on the market that fits your terms.
Review the displayed Annual Percentage Rate (APR) and other loan details.
If the terms are acceptable, confirm the transaction to initiate the loan.
Important: Once this loan is repaid, your capital is returned to you. The loan does not automatically renew. For continuous yield, you must create a Recurring Loan Offer.
Option B: Create a Recurring Loan Offer
This option allows you to become a continuous liquidity provider. You are "making" an offer that is placed on the order book for borrowers to accept. When a loan is repaid, your offer automatically returns to the market, ready to be matched with a new borrower.
How to Create a Recurring Offer:
Select the "Recurring Lend" tab.
Enter the terms for the offer you want to create, including the loan duration and the APR you wish to receive.
Pro-Tip: Setting a Competitive APR
For your offer to be consistently matched, its APR must be attractive to borrowers. You can determine the current market rate by following these steps:
Research the Market: Navigate to the "One-Time Lend" interface.
Define Your Term: Enter the same maximum duration you plan to use for your recurring offer (e.g., 5 days), and the lowest possible minimal duration.
Identify the Rate: The interface will show you the best available APR for that term. This is the current market rate.
Create Your Offer: Return to the "Recurring Lend" interface and create your offer using the APR you just identified.
By setting a competitive rate, your offer is likely to be matched repeatedly, generating continuous yield until market conditions change. You can disable your offer at any time to prevent it from renewing further.
What exactly are minimal and maximal durations?
When you make a loan you need to specify 3 parameters:
The wanted APR: This will be the APR of the loan. It doesn't get adjusted upward even if market conditions allows it so choose wisely.
The minimal duration: This is the minimal duration of your loan. A borrower can only repay your loan after this minimal duration elapsed.
The maximal duration: This is the maximal duration of your loan. A borrower has to repay your loan before this maximal duration. If they doesn't, anyone (including you) can liquidate this loan and force them to repay you. If no one liquidates this offer, the loan still exists and the APR is still getting paid, and at any moment you can liquidate this loan to get your money back.
Last updated