The borrower is crucial in lending. Without the borrower, lenders will not make a return on their deposit. Total Value Locked (TVL) on a platform looks great, but not much use if the collateral is not used. So we believe there needs to be an incentive for borrowers to deposit their funds on Lumin Finance. This incentive acts as a flywheel to bring active usage to the platform.

We do this by firstly offering flexible loan amounts and durations that will offer the borrower plenty of options.

No minimum or maximum borrow amount. Minimum duration 30 days, maximum 300 days.

20% of the total $LUMIN token supply is allocated to incentivise borrowers. These tokens are emitted daily and the rewards are shared between active borrowers. More information on this will be added soon.

There are requirements that a borrower needs to adhere to. All loans are over-collateralised. The protocol requires a minimum of 120% collateral plus a 10% buffer zone. The buffer zone is to protect borrowers from short-term price changes.

Based on a USDC loan, the borrowers account would look like this.

RequirementsUSDC Loan

Collateral posted by borrower


Core collateral


Over-collateralisation to 120%


10% buffer required




Borrower can now utilise $10,000, minus the platform fee (10% of the total interest to be paid), which is immediately deducted from the borrowed sum?

Borrower must maintain the 120% collateral ratio, otherwise they can be liquidated. We will go through liquidations later.

The borrower will now go to the Loan Options available.

Borrowers can add and remove collateral at any time, provided their collateral is at least the minimum required collateral of 120% plus safety collateral level.

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