Moai Lending is an algorithmic, autonomous DeFi protocol allowing users to frictionlessly earn interest or borrow assets with the lending market.

If you have questions or want to learn more, join the Moai Finance Discord or check out our Medium articles.

Getting Started

How do I use Moai Lending?

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How does the Moai Lending work?

Moai Lending is the lending market protocol that does not lend assets directly to borrowers, but you can supply liquidity to a market and borrow from that market. In each market, interest rates are determined algorithmically based on supply and demand, and interest accrues every block. You can access the Moai Lending protocol at any time, so you’re free to withdraw or repay whenever you want.

Supply & Earning

How do I supply?

Browse to the "Supplies" to find the asset you want to supply. Choose the quantity you intend to supply and complete your transaction. After confirmation, your supply will be successfully recorded, and you'll start earning interest.

How much will I earn?

mTokens holders receive continuous earnings that evolve with market conditions based on:

  • Interest rate payments on loans: Suppliers receive a portion of the interest paid by borrowers, determined by the average borrowing rate multiplied by the utilization rate. Higher utilization of a reserve leads to increased yields for suppliers.

Each asset possesses its supply and demand market with its Annual Percentage Yield (APY), which fluctuates over time.

Is there a minimum or maximum amount to supply?

You can supply any amount you want, as there are no minimum or maximum limits. However, it's crucial to consider that the transaction costs may outweigh the anticipated earnings for extremely low amounts. When supplying very low amounts, please consider this.

How do I withdraw?

To initiate a withdrawal, navigate to the "Supplies" section and click on "Withdraw". Choose the desired withdrawal amount and proceed with submitting the transaction.

Ensure that there is adequate liquidity available (not borrowed) for withdrawal. If there isn't enough liquidity, you'll need to wait for additional liquidity from suppliers or borrowers repaying their loans.

Can I opt-out of my asset from being used as collateral?

Yes. Once you've supplied your assets, you can unselect the asset so that it will not be used as collateral. It is available on the "Supplies" page. Simply switch the "Collateral" button on the asset you would prefer to opt-out from being used as collateral.

Borrowing & Repaying

How do I borrow?

Prior to borrowing, you must first provide any tokens to serve as collateral. Once this is completed, proceed to the Borrows section and select "Borrow" for the asset you wish to borrow. Specify the amount you require, based on the collateral available for the loan. You can always change your rate afterward as many times as you want.

How much I can borrow?

The maximum borrowing limit is determined by the value of assets you've deposited and the available liquidity. If there isn't sufficient liquidity or if your health factor doesn't meet the requirements, you won't be able to borrow the asset.

What asset do I need to repay?

You repay your loan with the same asset you borrowed. For example, if you borrow 10 XRP you will pay back 10 XRP + borrowing interest accrued.

How much would I pay in interest?

The interest rate you pay for borrowing assets is determined by the borrowing rate derived from the supply and demand ratio of the asset. The interest rate associated with a variable rate fluctuates regularly. You can find your current borrowing rate anytime in the Borrows tab.

What is the health factor?

The health factor serves as a numerical indicator of the security level of your deposited assets in relation to borrowed assets and their underlying value. A higher value indicates greater safety for your funds in case of liquidation. If the health factor reaches 1, the liquidation process for your deposits is initiated. A Health Factor below 1 can get liquidated. For example, with a health factor of 2, the collateral value versus the borrowed amount can be reduced by half or 50%. The health factor is influenced by the liquidation threshold of your collateral compared to the value of your borrowed funds.

What happens when my health factor is reduced?

The health factor is subject to change based on the fluctuation in the value of your supplied assets. An increase in your health factor enhances your borrowing position by making it less likely for the liquidation threshold to be met. Conversely, if the value of your collateralized assets declines, the health factor also decreases, thereby increasing the risk of liquidation.

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