Earn & Borrow
Unlock the Potential of Your Crypto with Maven Finance's Lending
Last updated
Unlock the Potential of Your Crypto with Maven Finance's Lending
Last updated
Maven Finance's lending module operates on a peer-to-peer structure, allowing users to supply assets and earn yield by lending them to other users.
The lending process takes place in multi-collateral, non-custodial vaults, where borrowers can borrow assets by using their crypto-assets as collateral.
Leveraging Maven Finance's Lending contract, users can supply assets to the lending pools and earn yield on their deposits.
Whether it's MVRK, USDT, or wBTC, lenders can contribute their assets to the pools and earn interest over time.
In return for their contributions, lenders receive mTokens, such as mUSDT or mEURL, representing their proportional share of the lending pool. This is a simple and effective way to put idle assets to work and grow your holdings.
In order to borrow from the pool below, borrowers must comply by the pre-determined borrowing rules, such as providing at least 200% collateral to secure their loans, as described below.
Maven Finance offers borrowers the opportunity to access assets through its lending pools by utilizing crypto-assets as collateral in multi-collateral, non-custodial vaults.
Borrowers can secure loans denominated in assets like USDT and MVRK by providing adequate collateral.
While borrowers are charged an interest rate on their loans, along with a one-time admin origination fee, they benefit from the flexibility and convenience of accessing liquidity without selling their crypto assets.
Maven Finance's interest rate model is designed to optimize the lending ecosystem.
The interest rates borrowers pay are determined by a dynamic algorithm calibrated to manage liquidity risk and utilization.
This model ensures that when capital is abundant, borrowers can enjoy competitive interest rates, while encouraging repayments and additional supply during periods of scarcity.
Maven Finance's interest rate model creates an efficient lending environment that balances the needs of lenders and borrowers, promoting stability and sustainable growth in the platform.
