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, MUSD, MMF, NESS, VERSA, ARGO, DARK (no farm)
Fantom: FTM, USDC, fUSDT
The interest rates for depositing the assets above are determined by the untilization of the lending vaults, following their corresponding interest rate curve. Detailed parameters can be found here.
When users deposits their assets to the lending vaults, they typically receive ibToken as a proof of ownership of the loan. ibTokens stands for "Interest-bearing Tokens", where the exchange rate of 1 ibToken to original Token internalizes the interest receivables. Single Finance Protocol takes 18% on any interests charged, and the displayed APY figures are after fees.
Besides lending intersets, users can also stake the ibTokens into Single Finance's vaults to earn extra SINGLE. Please note that once staked into our vaults, the ibTokens' balance might no longer be visible in your wallet. But do not worry, you can check your balance in the portfolio section, and you can unstake the ibTokens from the vault anytime. There is no lock-up period for lending & staking.
Lending in Single Finance is very 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 monitor 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 receive their funds back.
IMPORTANT: New borrowings are not allowed once the lending vaults' utilization reaches 95%. However, there may be interests accrued from existing positions or some lenders withdrawn from the pool, resulting in utilization higher than 95% or even 100%. When this happens, lenders might not be able to withdraw their funds but will continue to enjoy high APYs.