For lenders
Lenders put USDC (or rupees) into one shared vault. The vault funds merchants' loans, and the loan fees make every lender's shares worth more. This page explains shares, returns, withdrawals and the risks.
The vault and your shares
When you deposit, you receive runUSDC shares: your slice of the vault. The vault's value (its NAV) and the share price are:
The +1 is a virtual offset of 1 USDC that makes the price impossible to manipulate in an almost empty vault. The first-loss reserve is kept separately: it isn't lenders' money and isn't part of the vault value.
Deposit
- On Lenders, press Get 1,000 test USDC (free, once every 10 minutes).
- Press Register share storage once (0.01 NEAR): the vault needs a record for your shares.
- Enter an amount and press Deposit. The page shows how many shares you'll get before you confirm.
That was a real testnet deposit: at a share price of 1.000899, 200 USDC bought 199.82 shares.
In rupees: use the “Deposit ₹ (UPI)” card. The INR gateway converts at the live rate minus 0.5% and deposits the USDC for you, so you get shares the same way.
Where the return comes from
Merchants repay their loan plus a flat fee (4%, 7% or 10% by grade). Each repayment is split into principal and fee in proportion. Of the fee part, 90% goes to the vault (raising the share price) and 10% to the reserve.
On a 10,000 USDC vault that one loan moved the share price from 1.000000 to 1.000899: exactly what the live testnet vault shows today. Lending itself doesn't change the share price: cash becomes a loan of the same value.
Withdraw
- Enter a number of shares and press Request withdrawal. The shares move into escrow.
- Wait for the cooldown: 120 seconds on testnet (7 days on mainnet).
- Press Claim. You receive the shares' value at claim time.
Pricing at claim time is deliberate: escrowed shares still share any loss booked during the wait, so nobody can exit at the old price just before a default. You can Cancel a request to get the shares back.
In rupees: register a UPI ID in Settings first, then use “Withdraw to ₹”. The USDC value goes to the INR gateway, which pays ₹ = USDC × rate × 99.5% to your UPI ID and records the payout on-chain.
Risks, and how they're limited
| Event | Effect on your shares |
|---|---|
| A loan is late one period (Delinquent) | 50% of its unpaid principal is set aside as a provision, so the share price dips. It recovers when the loan is current again. |
| A loan defaults (two missed periods) | The unpaid principal is written off. The reserve pays it first; lenders absorb only what the reserve can't cover. |
| After a default, the merchant pays again | Recoveries go to lenders' uncovered loss first, then refill the reserve. |
| Many withdrawals at once | At most 80% of the vault can be lent out, so some cash is always free. If cash is still short, a claim fails with ERR_LIQUIDITY and can be retried once loans repay. |
The vault numbers on the Lenders page
| Number | Meaning |
|---|---|
| Total assets (NAV) | Cash plus loans outstanding, minus provisions. |
| Share price | What one runUSDC share is worth in USDC. |
| Utilization | Loans outstanding ÷ vault value. Capped at 80%. |
| Outstanding principal | USDC currently lent out and not yet repaid. |
| Provisions | Money set aside for late loans (50% of their unpaid principal). |
| First-loss reserve | The protocol's own money that pays defaults before lenders do. |