Sovryn allows you to earn a passive income through lending your funds. You can earn interest without relinquishing your assets to a third-party custodian. Sovryn is a decentralized finance platform that requires no permissions and will never take custody of your coins. The platform offers core features such as lending that can elevate decentralized finance for Bitcoin to a whole new level.
When you lend on Sovryn, your assets are deposited to a lending pool from which funds can be borrowed directly or used in margin trading positions. The APY (annual percentage yield) is the interest rate paid to all lending pool participants. This value changes according to the demand and supply for lending. Interest payments made by borrowers are distributed to lenders in the asset lent. Borrowed funds are funds that have been taken out of the pool by borrowers. You are not entrusting your holdings to a centralized custodian or a multi-signature (joint) custodian that issues digital IOUs for your assets. The arrangement is entirely non-custodial. Borrowed funds are overcollateralized by borrower assets locked in a smart contract to protect the assets you lend. These collateral assets are subject to automatic liquidation if the collateral ratio falls below a threshold.
You may withdraw your funds at any time with no penalty as long as funds in the lending pool are available and not being borrowed. Under ordinary circumstances, sufficient funds should be available for withdrawal. When available funds (funds that are still in the lending pool and available for borrowing or withdrawal) are in short supply, the system sets the interest rate progressively higher to discourage borrowing and encourage lending. When liquidity is abnormally low, the withdrawal amount may be less than the initial deposit. In this case the system will raise interest rates dramatically to reward lenders. A high APY will typically attract more deposits from lenders and loan payoffs by borrowers, resulting in a rapid increase in funds available for withdrawal. Thus, the system dynamically adjusts to reward lenders for the cost and risk of illiquidity.
The Lend APY shown in the dapp is the current annual percentage yield (interest rate) being paid to users lending the selected asset. The APY varies according to the demand and supply for lending on the Sovryn platform. That is, it can change based on deposits or withdrawals in the lending pool as well as amounts borrowed or paid back on existing loans. You can learn about how the borrowing rate is set. However, the relationship between the Lend APY and the Borrow APY is complex due to the following factors:
Note that interest payments made by borrowers are distributed to lenders in the same asset that was lent, not the collateral asset held by the borrower.
Note that you can only lend DLLR and BTC on the dapp. You can lend all assets on the alpha dapp.
You will be shown a deposit summary. Check your selections and then click the Confirm button.
You will be prompted by your wallet to confirm the transaction.
Your Lend status can be viewed on the Lend page, showing each detail of every lending position you have. You can also use this to Adjust the balance of your loan by either depositing or withdrawing funds if they are available.
Note that you can also lend DLLR and BTC on the newer dapp.
Follow these steps to lend on the Sovryn platform.
After selecting the Deposit option in the previous step, you will be prompted by your wallet to perform approval and confirmation.
Your Lending History can be viewed at the bottom of the page, showing each detail of every lending activity you make.
Note that some lending pools can only be accessed on the alpha dapp.
A user has an outstanding loan right after completing a successful lending transaction. To withdraw a loaned asset, follow the steps below.
You will be shown a withdraw (or deposit) summary. Check your selections and then click the Confirm button.
You will be prompted by your wallet to confirm the transaction.
Note that you can also adjust loans of some assets on the newer dapp.
A user has an outstanding loan right after completing a successful lending transaction. To withdraw a loaned asset, follow the steps below. The first three steps are identical to the above depositing process (screenshots included).
After selecting Withdraw in the previous step, you will be prompted by your wallet to perform approval and confirmation.
Lending on Sovryn allows you to earn interest on your lent asset(s). The APY is the variable % you gain annually for lending your assets and changes according to the demand and supply for lending. Interest payments made by borrowers are distributed to lenders. Lending on Sovryn is non-custodial, you are free to initiate a withdrawal at any time. With Sovryn, you do not have to entrust your holdings to a centralized custodian or a multi-sig that issues digital IOUs for your assets. You are in full control of your funds while the blockchain provides you with security.
Select lending pools provide SOV reward incentives. The reward incentives are evaluated on a weekly basis with the rates being introduced, re-calibrated, or removed alongside the AMM yield-farming pools every Monday.
Lending on Sovryn is quick and easy. Follow this simple step-by-step guide.
Withdrawing from a lending pool is quick and easy. Follow this simple step-by-step guide.