How to use Lend

1. Open Lend website

https://lend.kiki.finance/

2. Connect wallet

Click connect wallet button, and connect your MetaMask.

3. Get wstXSAT

Stake your XSAT and get stXSAT

https://ibtc.kiki.finance/stxsat/

Wrapped your stXSAT and get wstXSAT

https://ibtc.kiki.finance/stxsat/wrapped/

4.1 Supply wstXSAT

4.2 Supply XSAT

Supply XSAT — the “Stable-Return” Liquidity Provider

• Role

  • User A (the “Stable-Return” provider) holds XSAT and wants to earn passive interest without taking on leverage.

• Steps

  1. In the Supply XSAT page, A enters the amount of XSAT to deposit and confirms.

  2. The protocol deposits A’s XSAT into the lending pool and immediately begins accruing interest.

• Yield Model

  • Utilization Rate U = (Total XSAT borrowed) / (Total XSAT supplied)

  • Borrow Rate:

    • If U≤95%, the borrow rate is a fixed 30 % APR.

    • If U>95%U, the borrow rate rises linearly above 30 % to discourage overcrowding.

  • Supply APY ≈ (Current borrow rate) × U

• Examples

  • If U=50%, borrow rate = 30 % APR → Supply APY ≈ 30 % × 50 % = 15 % APR.

  • If U=98%, and borrow rate has risen to, say, 40 % APR → Supply APY ≈ 40 % × 98 % = 39.2 % APR.

• Key Points

  • Your interest scales with market demand: higher utilization → higher your yield.

  • No lock-up: you can withdraw anytime (subject to pool liquidity).

Supply wstXSAT & Borrow XSAT — the “Leverage” Yield Amplifier

• Role

  • User B (the “Leverage” taker) holds wstXSAT (staked XSAT) and wants to borrow XSAT against it, then repeat the cycle to amplify returns.

• Steps

  1. In the Supply wstXSAT page, B deposits wstXSAT as collateral.

  2. In the Borrow XSAT page, B chooses how much XSAT to borrow:

     • If overall utilization U≤95%, the borrow rate is fixed at 30 % APR.

     • If U>95%, the rate climbs linearly above 30 % to deter excessive borrowing.

• Leverage Cycle

  1. B takes the borrowed XSAT and stakes it to mint additional wstXSAT.

  2. B re-deposits this new wstXSAT as collateral.

  3. B repeats borrowing the maximum allowed XSAT, staking, and re-depositing until reaching their desired leverage or the protocol limit.

• Yield vs. Risk

  • Stable phase (U≤95%): borrow cost = 30 % APR.

    • If you run a 2× leverage (borrow 1 XSAT against 1 wstXSAT), your gross APR ≈ 30 % × (2 – 1) = 30 %, minus fees.

  • Kink phase (U>95%): rates spike above 30 %, so each additional 1 % utilization adds extra APR.

• Warnings

  • Leverage multiplies both returns and borrowing cost—monitor your collateral ratio closely.

  • Consider exiting or deleveraging before U nears 95 % to avoid sharply higher rates.

  • You can always repay borrowed XSAT and withdraw your wstXSAT collateral.

⚠️ Liquidation Risk

• Your collateralization ratio (or “health factor”) must stay above the protocol’s minimum threshold.

• If the value of your wstXSAT collateral falls (or you borrow too much) so that your health factor drops below 1—or LTV exceeds the allowed maximum—your position can be liquidated.

• Keep a buffer: maintain collateral well above the minimum to avoid forced liquidation during market swings.