After a successful beta test, we're finally opening Crypto Lending to everyone!
The core idea in a nutshell: you deposit USDC into a lending pool. Borrowers take out loans by locking up Bitcoin as collateral worth more than the loan itself, and you earn interest on every active loan.
How does it work?
🔘 Deposit USDC into a lending pool (minimum deposit: 1 USDC).
🔘 Borrowers lock up BTC or ETH as collateral worth more than the amount they borrow.
🔘 While the loan is active, you earn interest.
🔘 Withdraw your deposit together with the interest whenever liquidity is available.
❗️ The more USDC borrowed from a pool, the higher the demand. Higher demand generally leads to higher yields for lenders.
How do we protect lenders?
To borrow 80 USDC, a borrower must lock up approximately 100 USDC worth of Bitcoin as collateral. That extra 20% is a safety buffer in case Bitcoin dumps.
If the value of the collateral (Bitcoin) drops below a certain threshold, the collateral is automatically liquidated before it can fall below the loan amount. This returns USDC to the lending pool first and helps protect lenders.
The interest you earn is yours to keep—you can withdraw it, reinvest it into another lending pool, or invest it in real businesses on 8lends.
What are the risks?
🔘 The interest rate isn't fixed. It changes depending on borrowing demand. You always see the current rate in real time before depositing.
🔘 Bitcoin's price can dump sharply. That's why every loan is overcollateralized. If the collateral value drops too much, it's automatically liquidated before the loan becomes undercollateralized.
🔘 Withdrawals may occasionally take longer than usual. If most of a pool's liquidity has already been borrowed, you'll need to wait until borrowers repay their loans or new liquidity enters the pool.
🔘 Smart contract risk. Like any DeFi protocol, there's always a possibility of a bug in the smart contract code. The contracts are open on Base and can be audited by anyone, though. Each lending pool is isolated, so funds from different pools never mix.
❗️ Crypto and DeFi always involve risk. Returns aren't guaranteed and may change over time. This post is an explanation of how the product works, not investment advice. Always do your own research before investing.
Go and see how it works 👇
app.8lends.io/lend