AMP Finance

AMP Finance is a peer-to-peer lending protocol on the Midnight network. Lenders post offers with fixed terms, borrowers take them by putting up collateral, and nobody can tell who lent to whom.

Every offer, loan and repayment is visible on the ledger, but no wallet address is ever attached to any of them. The people behind a loan stay private from each other and from everyone else. That is the reason the protocol exists, and most of its design follows from it.

At a glance

Model

Offer-basedOne lender, one borrower, no pool

Rates

FixedSet by the lender per offer

Liquidation

NoneCollateral returned or seized whole

Privacy

ShieldedNo address on any position

Network

Midnight PreviewTest network, tokens have no value

Guides

Start here

• Testnet

  What the test network is for, and what to expect from it.

  • What to expect
• How it works

  The life of a loan on AMP Finance, who does what, what the protocol never does, and how it differs from pooled lending.

  • The two roles
  • The life of a loan
  • What the protocol never does
  • Compared with pooled lending
  • A note on timing
• Getting started

  Supported wallets, the network, connecting, and where test tokens come from.

  • Supported wallets
  • The network
  • Connecting a wallet
  • What the wallet needs
  • Getting test tokens
  • The seed phrase
• Shielded tokens

  Why everything is shielded, and how to shield and unshield.

  • Why everything is shielded
  • Shielding a token
  • Unshielding a token
  • Keeping a shielded balance
• Fees and transactions

  DUST, the protocol fee, the late fee, and what happens during a transaction.

  • The three fees
  • What happens during a transaction
  • When something does not go through

Lend

• Lending

  How an offer works, posting one, and managing it afterwards.

  • How an offer works
  • Posting an offer
  • Managing an offer
• Returns and risks

  What a lender earns, with a worked example, and what can go wrong.

  • What a lender earns
  • A worked example
  • Risks for lenders

Borrow

• Borrowing

  Choosing an offer, taking a loan, repaying, and getting collateral back.

  • Choosing an offer
  • Taking a loan
  • Repaying
  • Getting collateral back
• Default and seizure

  The due date, the grace window, and what happens after it.

  • The three windows
  • What the protocol does not do
  • Risks for borrowers

Manage

• Positions and recovery

  Offer tokens, loan tokens, finding positions, and restoring a wallet.

  • Position tokens
  • Finding your positions
  • Recovery
  • Losing or sending a position token

Reference

• Markets and parameters

  What defines a market, the two fees, terms, grace windows and minimums.

  • How a market is defined
  • Protocol fee and late fee
  • Terms and grace windows
  • Minimum sizes
• Privacy

  What is visible, what is not, and what still leaks.

  • What is visible and what is not
  • Sharing a shielded address
  • Known leaks and what helps
• Security

  What the contracts guarantee, and how to stay safe.

  • What the contracts guarantee
  • Staying safe
• FAQ

  Short answers to the common questions.

  • General
  • Wallets and fees
  • Shielding
  • Lending
  • Borrowing
  • Positions
  • Privacy
  • Troubleshooting
• Glossary

  Every term used here, in a sentence or two.

How it works in four steps

1. Shield a token. AMP Finance only works with shielded tokens, which hide who holds them. A public token is swapped for its shielded twin, one for one.
2. Read the board. Each market lists open offers: how much is on offer, what collateral is required, the interest and the term. No names, no addresses.
3. Lend or borrow. A lender posts an offer and receives an offer token. A borrower picks an offer, posts the collateral and receives the loan in the same transaction, along with a loan token.
4. Repay, or don't. Repay on time and the collateral comes straight back. Repay a little late and a fixed late fee applies. Never repay and the lender takes the collateral, all of it, and the loan closes for good.

The closest everyday comparison is a pawnshop rather than a bank. How it works covers the full lifecycle and how this differs from pooled lending.