⬆️Lending

You have an amount of capital you want to put to work, earn a return from. You can post your capital to your account and offer it out at a rate or rates you decide.

You set the parameters.

Fixed Rates

Firstly you set the rate. These are fixed rates between 2% and 12% for the duration of the loan. You can set all at one rate or break it down and offer different rates. There is no minimum amount required to be deposited.

Fixed rates here are important to understand. You get exactly what you request. These are NOT APYs. Often with pooled loans, you will think you are getting an APY, but in actual fact your APY gets diluted. Other lenders in your pool share that APY, which ultimately trends towards 0%.

So if you set $1,000 at 5% for 30 days, in 30 days you will receive $1,000 + $50.

So in this instance $1,000 + $50 = $1,050 returned to your account once the loan is settled.

The Duration

You can specify differing loan durations and fixed interest rates on your deployed capital. Loan duration is anywhere from 1-10 terms in 30-day increments.

Unused deposit

Whilst waiting for your loans to be picked up by a borrower, you can also earn from the unused deposit being used as liquidity for the Lumin Protocol.*

So whatever happens, all your funds can be rewarding, regardless of the loan being accepted.

Let’s give an example.

You have $10,000 You deposit the full amount to your account.

You decide to offer it in the following ways:

Loan	Interest Rate	Terms (Days)
$5,000	3%	2 (60)
$3,000	5%	4 (120)
$2,000	10%	6 (180)

Loans of any amount can be accepted until the $10,000 in this example has been allocated.

So a borrower could come and select $2,000 at 3% (60 days). Another selects $1,000 at 5% (120 days), and another selects $2,000 at 10% (180 days).

The lenders will now start earning the fixed interest specified.

Loan	Interest Rate	Term (Days)
$3,000	3%	2 (60)
$2,000	5%	4 (120)
$0	10%	6 (180)

Those loans taken will show in the lenders account as live, and will start earning the fixed interest configured by the lender.

The remaining balances above are still available to be accepted. But until they do, those funds ($5,000 in total) can be used as liquidity on the platform until they are selected by a borrower, and will earn a share of the platform fees.*

You now set the length of the loan. This is done in 30 day terms. Minimum 30 days, maximum 300 days.

*This is a v2 feature.

Please see our v2 page for a full run down of v2 upgrades.