Other than yield farming, Single Finance also offers lending vaults for users who would like to HODL their tokens while enjoying high interest rates safely. Currently, Single Finance supports single-asset deposit for following assets:
Cronos: SINGLE, CRO, USDC, USDT, VVS, MMF, MUSD, FUL, VNO, LCRO, ARGO, bCRO, VERSA, DARK (no farm), NESS (no farm)
Fantom: SINGLE, FTM, USDC (Multichain), fUSDT (Multichain)
The interest rates for depositing the assets above are determined by the utilization rate of the lending vaults, following their corresponding interest rate curve. Detailed parameters can be found here.
When users deposit their assets to a lending vault, they will receive ibTokens as a proof of ownership of the loan. "ibToken" stands for "Interest-bearing Token", where the exchange rate of 1 ibToken to original Token increases overtime - thus also increasing the interest receivables. Single Finance Protocol takes 18% on borrowing interests for BuyBack and Burn, and the displayed lending APR/APYs already factored in this fee. Besides lending interests, users can also stake the ibTokens into Single Finance's vaults to earn extra SINGLE rewards.
Feature Update: One-click Lend & Stake
To streamline the operations of lending and staking, a new feature "One-click Lend & Stake" is now available on Single Finance. Once users deposit their lending assets, the protocol automatically redirect the sequential ibTokens into the associated staking vault, ensuring that they maximize all lending interests and staking rewards.
For current lenders, please visit our Step-by-Step Guide to upgrade existing lending vault to V2.
Please note that once you "Lend & Stake" into our vaults, the ibTokens' balance might not be visible in your wallet. Instead, you can check your balance in the portfolio section. You can withdraw from the vault anytime, since there is no lock-up period for lending & staking.
Lending on Single Finance is remarkably safe for lenders, as borrowers cannot withdraw the borrowed funds out of the platform. The use and return of funds are tightly controlled by the protocol, and the borrowing assets are only used for providing liquidity to Decentralized Exchange protocols. Our bot also monitors closely on the positions to ensure that the debt value is always smaller than the position value (refer to the Liquidation section for liquidation threshold), such that lenders can expect to receive the entirety of their funds when they decide to withdraw.
IMPORTANT: New borrowings are barred once a lending vault's utilization rate reaches 95%. However, interests may accrue from existing positions and some lenders could withdraw small amounts from the pool, resulting in a utilization rate of higher than 95% or even 100%. When this happens, lenders might not be able to withdraw their funds, but will continue to enjoy exceptionally high APY due to the high utilization rate.