Connect your wallet to the Yield.Credit application. Begin by choosing “Lend” and selecting the asset you wish to lend. Choose your loan duration and Interest rate.
Lenders can lend a minimum of $1,000 up to a maximum of $50,000.
Lenders can choose a minimum duration of 8 days and a maximum duration of 60 days.
Lenders can choose a minimum guaranteed interest rate starting at 2% up to a maximum 12.5%.
Lenders pay a 7.5% fee on the interest they receive. So a loan of 10K USDT @ 10% would have them paying 75 USDT in fees (7.5% of 1000 USDT).
In the event that the lender seizes the loan's collateral, a fee of 7.5% of the collateral goes to the protocol and the lender keeps the rest.
Accepting a borrower’s request is automatic. There is no action needed on your part. Your principal, which is now waiting in a smart contract after you created the offer, is sent to the borrower once they accept the offer, and is sent back to you when the borrower repays the loan.
The borrower should top up the collateral otherwise the lender could seize the collateral.
If the loan is not repaid before the term expires, or the collateral falls below the minimum ratio for that asset, the lender will be able to seize the collateral. Upon doing so, a fee of 7% will be taken by the protocol, and the rest is sent to the lender.
You can view the status of your loans on the profile page in the app.