Supply & Borrow APY
Last updated
Last updated
Users who supply collect an APY from the users who borrow. The borrow APY is split across the entire pool, so Supply APY = Borrow APY * Utilization. For example, if there is 2 BTC in a pool, and 1 BTC is lent out at 20% APY, the suppliers of the 2 BTC will receive 10% APY each.
This APY is given in the same token as the supply. Deposit BTC for BTC yields, or SOL for SOL yields. This is because the APY on borrows is charged on the same yield as well. The displayed APY is based on compounding over a year.
Each Token has a different set of Parameters that determines their actual yields at different points, and can be seen here.
Additionally, you get Liquidity Mining (LM) rewards on SLND, UST, stSOL and mSOL. These LM rewards are collectible on the 3rd of every month, at UTC Midnight.
When you are borrowing, you are paying a Borrow APY to the pool (for the users who supplied). This borrow APY is calculated based on the Parameters & The Math, and are displayed on our UI when you borrow. Borrow APY is added to your loan on a per-slot basis, so the amount of money you have to repay goes up over time.
On most of the tokens, such as USDC and SOL, borrowers also receive SLND rewards for borrowing. These are claimable on the 3rd of every month at UTC Midnight, same as Liquidity Mining. For these, you can even get paid to borrow, as SLND Rewards > Borrow APY. These are displayed on our UI as a negative APY.
There is no "Deadline" for you to repay your loans. They will just tick up over time, but you can repay them any time!
Rewards can be viewed by clicking on the Pending Rewards button on the top right, near the Connect Wallet button.
Rewards are claimable on the 3rd of each month, at UTC Midnight.
SOCN rewards for the month will be claimable once the token launches.
In addition to the standard LM program where users receive SLND tokens, we are currently running a trial on a LM 2.0 program that involves call options.
An additional 10% of SLND tokens have been earmarked for LM rewards with the following parameters:
Options are American Strike
Price: 50% of the SLND price at the end of March
Expiry: One month
These details are subject to change, but the terms are as follows:
SLND price is at $2.00 on March 31st, you get to claim call options with a strike at $1.50 on April 3rd. You can then exercise them for the token, paying the strike to receive the full token. Exercising the option will involve topping up $1.00 per SLND token ($1.00 given to you + $1.00 your entry price). You can choose to hold or sell the SLND token after that.
Again, details are subject to change, and will eventually replace our regular LM program.
On the 3rd of every month at UTC 00:00, your options become claimable alongside your regular LM rewards.
Currently, the parameters are set at 50% ITM. Thus, assuming a $2 SLND price at the end of March, the strike price of the option will be $1 USDC. This means that you can pay 1 USDC to receive 1 SLND token worth $2. The image above shows a SLND LM reward of 5 SLND options, worth $5.
The expiry date shown is in real time, so it will expire exactly at the stroke of midnight according to the expiry date displayed (not slot times).
1 Option Token = 0.1 SLND token, so 5 SLND will be 50 Options as displayed by Phantom's UI. Thus, you can claim your LM rewards in denominations of 0.1. If you have <0.1 SLND, they will be rolled forward to the next month. Our UI will handle this, so no action is needed from you.
When you're ready, click on the Exercise button shown below to open the exercise UI.
On our exercise UI, you can swap your USDC for SLND immediately without leaving our site.
