Lendasat DocsQuestions
Frequently asked questions about lending on Lendasat.
Which stablecoins can I lend on Lendasat?
Currently, you can lend in USDC and USDT. Lendasat supports lending across multiple blockchain networks, allowing borrowers to access your liquidity based on their payout preferences.
If you want to target Virtual Card borrowers, your loan offer must be in USDC on Polygon to be compatible.
On which blockchain networks can I lend?
You can lend on Polygon, Ethereum, Solana, Starknet, and the Liquid Network. The network you choose determines how the loan principal will be sent and how you'll receive repayments. Offers are specific to the network you select.
How is the interest rate (APR) determined for my loan offer?
As a lender, you set your own Annual Percentage Rate (APR) when creating a loan offer. The APR defines the total amount of interest you'll receive over one year. Regardless of whether the borrower repays early or on time, you receive the full interest as per the agreed loan duration. The APR does not include origination or network fees.
How do I specify the amount I want to lend?
You can define both a loan amount range and a maximum liquidity available for your offer. For example, if you set a loan range of $1,000 to $5,000 and dedicate $50,000, you can accept up to 10 loans within that range until your reserve is used. This helps you stay in control of your capital allocation.
How do I set the loan duration I want to offer?
You choose a duration range when publishing your loan offer, such as 1–3 months, 1–6 months, 1-12 months, 6–12 months, etc. When searching for a loan, borrowers will only see your offers if they request a duration that falls within your selected range.
How will I receive repayment from the borrower?
The borrower will send you the principal + interest in a single on-chain transaction, using the same stablecoin and blockchain network originally agreed upon. Lendasat does not intermediate the funds. You'll receive the transaction hash for verification.
What happens if the borrower gets liquidated?
If a borrower's Loan-to-Value (LTV) ratio exceeds the liquidation threshold (90%), their BTC collateral is liquidated. You will receive your full principal and agreed interest automatically.
As a lender, you can trigger liquidation once the liquidation threshold of 90% LTV is reached. The exact liquidation price depends on when you choose to trigger the liquidation, which may result in a higher or lower liquidation price depending on market conditions at the time you initiate the liquidation.
You can choose to:
- Receive Bitcoin to cover the full principal and interest of the loan, or
- Liquidate the collateral into stablecoin (on the same blockchain network originally agreed upon) to receive the repayment in stablecoin instead.
Please note that fees will be deducted from the collateral value during the liquidation process. For detailed fee information, see our Fee Schedule.
This ensures your capital is always protected.
What happens if the borrower repays before the end of the contract?
Even if the borrower repays early, you will still receive the full interest for the agreed loan duration. This is because Lendasat uses fixed-term contracts, and the borrower agrees to pay for the entire term, regardless of repayment timing.
Do I need to complete KYC to lend on Lendasat?
No KYC is required to lend on Lendasat for stablecoin offers. However, some borrowers may request KYC.
Can I cancel or update my loan offer after it's posted?
Yes. You can modify or cancel your loan offer at any time, as long as it has not yet been accepted by a borrower. You can adjust the APR, duration range, loan amount, and more.
How is my capital secured until a borrower accepts my offer?
Your funds remain under your control until a borrower accepts your offer. Capital is not locked or moved until the contract is initiated. Lendasat never takes custody of lender funds.
What happens if my offer is not accepted?
If your offer isn't matched with a borrower, your capital remains untouched and fully available in your wallet. You can leave your offer open, modify it, or cancel it at any time.
Can I choose to receive repayment in Bitcoin instead of stablecoins?
In liquidation scenarios, yes. You can opt to receive BTC instead of stablecoins. This depends on how you configure your liquidation preferences when setting up the offer. Outside of liquidation, repayments are always made in the stablecoin and network initially agreed upon.
Receiving BTC may trigger a taxable event. Please consult a tax professional in your country to understand your obligations. Lendasat does not provide legal or tax advice.
Can I track the health of active loans I've issued?
Yes. Your dashboard allows you to monitor all active loans, including:
- Current Loan-to-Value (LTV)
- Collateral value in real-time
- Loan duration and remaining time
- Margin call notifications if needed
What are the risks of lending on Lendasat?
While the protocol is designed to protect lenders, risks may include:
- Smart contract vulnerabilities
- Extreme BTC price volatility
- Borrower disputes
Important: You are solely responsible for monitoring your loans and triggering liquidation when needed. If you fail to liquidate before the collateral value falls below the loan amount, you bear the loss. Lendasat does not guarantee full recovery of your loan amount.
Lendasat mitigates risks through overcollateralization and provides tools for monitoring, but the decision to liquidate rests entirely with you as the lender.
Are lending returns taxable?
Lending returns may be considered taxable income in many jurisdictions. Please consult a tax professional in your country to understand your obligations. Lendasat does not provide legal or tax advice.
Will I be notified if a borrower is approaching liquidation?
Yes. You will receive email and/or Telegram alerts when a borrower's LTV crosses risk thresholds (e.g. 80%, 85%). This allows you to track the health of your loans and anticipate liquidation events.
What happens if the borrower opens a dispute?
In the event of a dispute, Lendasat's dispute mechanism is triggered. Lendasat will intervene to assess and resolve the contract based on pre-agreed rules. Funds are released according to the outcome.
Can I lend fiat instead of stablecoins?
Yes, fiat lending is now possible. Depending on your region and payment infrastructure, fiat loans may become fully supported. KYC may be required depending on the partner used.
Is there a minimum or maximum I can lend?
There is no strict minimum, but offers typically start at $100. Maximum amounts depend on the liquidity you're willing to commit. You define both your loan amount range and the total capital allocated to the offer.
How long do the contracts last?
We follow a 30/360 day count convention. This is a simplified method of calculating interest where every month is assumed to have 30 days and every year has 360 days, regardless of the actual calendar. It's commonly used in corporate bonds, municipal bonds, and many loan agreements because it makes interest calculations more straightforward and predictable.