Lending
Provide liquidity and earn premiums or collateral.
Lenders supply USDC liquidity to the protocol, which is used to fund borrower loans.
Each loan offers lenders a predetermined premium that is included in the borrower’s buyback price for collateral.
When a borrower buys back collateral, lenders receive their USDC plus the agreed premium.
If a loan expires with collateral remaining, that collateral is transferred to lenders instead.
Lender Outcomes
Lenders participating in the protocol can experience two possible outcomes:
• Loan repayment The borrower buys back their collateral and the lender receives their USDC plus premium.
• Collateral acquisition The loan expires and the lender receives the remaining collateral.
Why Lenders Participate
• Earn premiums on fixed-term loans • Acquire collateral through defaulted loans • Participate in a transparent lending market • Provide liquidity without managing liquidations
Based Loans creates a lending system where lenders always understand the potential outcomes of the loans they fund.
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