Lending

Lending is one of the core functionalities of the Sendit money market. It allows users to deposit their tokens into isolated markets to provide liquidity to the protocol. In return, lenders earn a dynamic annual percentage rate (APR) based on the borrowing activity, the utilization of the liquidity pool and rewards added to the market.

As any other smart contract protocol, there are certain risks involved by being a lender. As a lender, make sure you understand the risks.

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How Lending Works

1. Deposit Tokens: Lenders deposit SOL into a specific money market. Each token has its own isolated market, ensuring that risks (e.g. a collateral’s value rapidly depreciating) are contained within that market. There can be multiple markets per asset differentiated by the underlying oracle.

2. Earn Yield: The Lending APR is composed of three different yield sources:

   Lending APR = Lending APR + Loans Origination APR + Token Incentives APR

3. Withdraw at any time: Lenders can withdraw their deposits and accrued interest at any time, provided there is sufficient liquidity in the pool.

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There are certain risks involved with providing SOL to a pool. By using this market, the users confirms that they have personally verified the oracle data and understand that they are acting entirely at your own risk. 

The platform assumes no responsibility for the accuracy of oracle information or any outcomes resulting from its use. Using a market with a malicious oracle may results in a total loss of deposited funds.