How to use Lend

1. Open Lend website

Click connect wallet button, and connect your MetaMask.

Stake your XSAT and get stXSAT

Wrapped your stXSAT and get wstXSAT

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).

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.

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.

Last updated 1 month ago