💡How it Works

There are a couple of ways you can start your Feeder Finance P2P Lending journey, let's start with walking through the lending process

Recall that there are two types of Offers: 1) Offer to 'Borrow' and 2) Offer to 'Lend'.

To recap:

An Offer to 'Borrow' is for users who want to collateralize their token and take out a loan ie.: want to borrow some liquidity.

An Offer to 'Lend' is for users who want to lend out liquidity secured by borrowers that collateralize tokens for security.

Now let's look at the process of each one:

Borrow Offer

1. Click 'Create Offer'

2. Select the Token You Want to Collateralize

3. Input Collateral Amount

This is the amount of token you want to collateralize against the loan you wish to take out

4. Input Offer Title and Offer Description (Optional)

This helps you indicate your preference or risk tolerance. A title like "FTM-GEIST for any Stablecoin" tells lenders you're hoping to borrow stablecoins with FTM-GEIST as Collateral. A description such as "Willing to go up to 35% LTV if the lending duration is beyond 30 days" would indicate you may be open to flexing the LTV from perhaps a preferred of 50% to 35% if the lender was open to longer-duration loans.

5. Input 'Preferred' Terms of the Loan

Three terms are set for each loan

1) APR: The interest you prefer to pay as a borrower (annualized). For instance, a loan of $100 paying 52% APR would cost the borrower $1 per week in interest; calculation: 52%/52 weeks = 1%/week, 1% of $100 = $1.

2) LTV: Loan-to-Value, which indicates how much in collateral value you are willing to put up against the value of the loan. The lower the LTV, the more collateral you have to put in. For instance, 50% LTV means you put up $100 for a $50 loan.

3) Duration: The unit of input is days but could be fractional. A 0.5 -day loan is a loan for 12 hours for instance. There are no limitations short/long but the borrower needs to repay before the term ends or collaterals could be liquidated by the lender.

Refer to our 'Lending Terms Consideration' link below for more.

6. Review the Offer Summary

[Pending]

Lend Offer

1. Click 'Create Offer'

2. Select the Token You Want to Lend

3. Input Amount You Wish to Lend

4. Input Offer Title and Offer Description (Optional)

This helps you indicate your preference or risk tolerance. A title like "USDC for Mid-Cap LPs" tells borrowers you're willing to accept mid-cap project's LP tokens in exchange for lending USDC. A description such as "Willing to do higher on LTV of up to 55% for shorter-term loans" would indicate you may be open to flexing the LTV from perhaps a preferred of 40% to 55% if the borrower was open to shorter-duration loans.

5. Input 'Preferred' Terms of the Loan

Three terms are set for each loan

1) APR: The interest you prefer to receive as a lender (annualized). For instance, a loan of $100 paying 52% APR would pay the lender $1 per week in interest; calculation: 52%/52 weeks = 1%/week, 1% of $100 = $1.

2) LTV: Loan-to-Value, which indicates how much in collateral value you are willing to accept against the value of your loan. The lower the LTV, the more collateral the borrower has to put in. For instance, 50% LTV means she puts up $100 for a $50 loan.

Refer to our 'Lending Terms Consideration' link below for mo

6. Review the Order Summary

Review the terms to make sure they are consistent with your expectations; see the following example:

Loan Offer: You are 100 USDC worth approx. $100
Bid Collateral Value: You expect 50% LTV from the borrower, so $200 worth of collaterals
Est. Interest: The estimated amount of interest you'll earn based on your preferred terms; approx. $0.7671
Loan Duration: The length of the loan you preferred; 7 days

Recall that there are two types of Offers: 1) Offer to 'Borrow' and 2) Offer to 'Lend'.

To recap:

An Offer to 'Borrow' is for users who want to collateralize their token and take out a loan ie.: want to borrow some liquidity.

An Offer to 'Lend' is for users who want to lend out liquidity secured by borrowers that collateralize tokens for security.

By creating bids, you are bidding on these offers by telling the borrower or lender what your terms are for either lending your funds or borrowing funds from them.

Now let's look at the process of each one:

Borrow Bids

1. Select the Offer You Want to Bid On

You will find that the preferred terms figures are a useful indication of whether or not you are going to get a deal done. If you think you can come close or even match the preferred terms, your bid is likely to be accepted.

2. Review The Offer Preferred Terms & Click 'Create Bid'

On the top right of the offer page, you'll see all terms that the Borrower is looking for. Specifically:

She's looking to pay around 35% APR for a 7 days loan and is willing to offer 50% LTV or 2x in collateral versus the loan amount.

You don't have to match it, but it is likely that you'll need to come close.

Once you're ready, click 'Create Bid'

3. Select The Asset You Want to Lend

4. Input the Amount You Want to Lend

This is the amount of selected token you wish to lend to the borrower

5. Input the Term of the Loan

Two terms need to be set by the bidder

1) APR: The interest you want to receive as a lender (annualized). For instance, a loan of $100 receiving 52% APR would yield $1 per week in interest to the lender; calculation: 52%/52 weeks = 1%/week, 1% of $100 = $1.

2) Duration: The unit of input is days but could be fractional. A 0.5 -day loan is a loan for 12 hours for instance. There are no limitations short/long but the borrower needs to repay before the term ends or collaterals could be liquidated by the lender.

Refer to our 'Lending Terms Consideration' link below for more.

6. Select Whether to Use Pro-Rata Interests or Allow Liquidator

Pro-Rata Interests: When turned on, interest due is proportionate to the duration of the loan at repayment. When turned off, the interest is fixed by the loan duration regardless of the repayment timing.

Allow Liquidator: When turned on, you allow Liquidators to come and settle the loan for you when it is due. The liquidator provides you with your principal plus interest, doing so, the Liquidator collects the borrower's collateral.

7. Review the Bid Summary

The summary provides an overview of your bid and the borrower's preferred terms. This will help you adjust or make decisions about your bid to the borrower.

Lend Bids

1. Select the Offer You Want to Bid On

2. Review The Offer Preferred Terms & Click 'Create Bid'

On the top right of the offer page, you'll see all terms that the Lender is looking for. Specifically:

She's looking to lend at around 30% APR for 5 days and is willing to accept 50% LTV or 2x in collateral versus the loan amount.

You don't have to match it, but it is likely that you'll need to come.

Once you're ready, click 'Create Bid'

3. Select The Asset You Want to Collateralize for the Loan

4. Input the Amount You Want to Collateralize

5. Input the Term of the Loan

Two terms need to be set by the bidder

1) APR: The interest you want to pay to the lender (annualized). For instance, a loan of $100 at 52% APR would cost $1 per week in interest to the borrower; calculation: 52%/52 weeks = 1%/week, 1% of $100 = $1.

Refer to our 'Lending Terms Consideration' link below for more.

6. Select Whether to Use Pro-Rata Interests or Allow Liquidator

7. Review the Bid Summary

The summary provides an overview of your bid and the lender's preferred terms. This will help you adjust or make decisions about your bid to the