💳Loan Protocol
Borrow USDC against LAND and LSRWA or provide USDC for stable yields
Last updated
Borrow USDC against LAND and LSRWA or provide USDC for stable yields
Last updated
The Landshare Loan Protocol, powered by Defactor's Pools technology, enables seamless borrowing of USDC against both Landshare RWA Tokens (LSRWA) and Landshare Tokens (LAND). Additionally, USDC providers can earn a consistent DeFi yield backed by LSRWA and LAND.
On the Loan Protocol page, you'll notice there are 2 different pools - one for LSRWA and one for LAND.
By clicking on one of the pools, you can view more detailed information about it.
Each pool has a maturity date by which all loans from borrowers have to be paid back or they will be liquidated. The "Completion %" listed indicates the amount of time that has already elapsed in the pool's duration (for example, on a 3-month pool, the Completion % would show 50% after 1.5 months). After the maturity date, all lenders that contributed to the pool can claim, receiving back the principal and rewards accrued on it. Your USDC is protected by the collateral (LSRWA/LAND) of the borrowers.
APY represents the interest paid by borrowers to lenders. USDC lenders will earn 10% APY, while borrowers will incur 10% APY interest payements throughout the duration of their loan.
Each loan is overcollateralized, meaning that borrowers must provide more collateral than they can take out in USDC. For LSRWA pool, the LTV ratio is around 50%, meaning borrowers can withdraw 50% of their collateral's value in USDC. As an example, a user who provides $100 in LSRWA can borrow 50 USDC.
Loans not repaid by the expiration date will be liquidated to repay lenders. In this process you will lose part of the position of your LSRWA/LAND as collateral, because it will be sold to cover your position (principal and interest). Additionally, there is a 10% liquidation fee (5% protocol fee and 5% liquidator fee). The remaining balance will be available for you to claim.
The process of borrowing USDC with LAND or LSRWA collateral is simple. First, press the "Supply/Borrow" button on the desired pool:
In the pop-up window, select Borrow. If you want to provide USDC instead, press Supply.
Next, enter the amount of USDC you wish to borrow. The collateral requirement will display automatically. Be sure you have enough collateral to complete the transaction.
Finally, press the Borrow button and approve the transaction in your wallet.
🎉That's it! You should now see the borrowed USDC in your wallet.
In order to prevent liquidation and a penalty, you must repay your USDC loan before the pool's maturity date. To view the maturity date, you can click on the pool and view the details on the top of the page.
To do the repayment, select "Borrowed" in the navbar or visit https://pools.landshare.io/borrowing to view your open positions at the bottom of the page. Press Pay Back to begin the repayment process:
You will see the amount owed, which includes principal and interest. Press Confirm to complete the repayment process, after which you will receive your collateral back.
🎉 And that's it! Your loan has been fully repaid. You can complete this process at any time before the maturation date.
