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Users can lend on Loopscale using:
  1. Loopscale Vaults: A passive approach where funds are optimized by third-party Curators. Learn more about Vaults here.
  2. Advanced Lending: A more hands-on approach that gives lenders control over terms, collateral, and rate. This page describes how to use advanced lending strategies.
With Advanced Lending, lenders place limit orders using a ruleset to define eligible collateral, durations, and rates. This means funds are “reusable” across markets, visible to borrowers on any matching order book.

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Open Position

  1. Visit the Lend page
  2. Choose an asset to lend (e.g., USDC)
  3. Click “View Market” to configure your lending strategy
From here, you’ll define which collateral types you’re willing to accept, interest rates for each loan duration (1-day, 1-week, 1-month, 3-month), and whether to enable
Lenders can choose which collateral types they’ll accept. This helps price risk more accurately.For example, a lender may accept only stablecoins to minimize volatility risk, or choose to accept memecoins in exchange for higher interest rates.
Specify fixed interest rates for each supported duration: 1 day, 1 week, 1 month, and 3 months.For example, offering a 5% APY for 1-month USDC loans means borrowers can borrow your USDC for that term at 5%, fixed until maturity.Interest rates are market-driven and set by lenders—not by protocol algorithms. More competitive rates are filled sooner. Longer terms usually command higher APYs.
Lenders can leverage Optimized Yield by keeping this toggle on. Optimized Yield deposits idle capital into partner variable-rate lending protocols (currently marginfi) so your capital earns yield while waiting to be matched.
If this is your first time lending a specific token (or if you’ve deleted a past position), you’ll pay a small one-time SOL rent fee. This is fully refundable when you delete the position later.

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Manage Position

Once created, your position appears on the Lend page and in your Portfolio.
  • View Position
  • Withdraw Funds
  • Update Position
  • Close Position
You can view and manage all active positions:
  1. From the Portfolio, under the Advanced Lending section
  2. From the bottom of the Lend page for the selected token

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Defaults & Liquidations

Liquidations are automatically processed for Advanced Lending positions on Loopscale. If the position is lending to a loan that has defaulted:
  • The borrower’s collateral is automatically liquidated to repay you
  • Recovered funds are returned to your lending position