Lending
An offer is one lender's money on one lender's terms, placed on a market's board for any borrower to take. Nothing about it is negotiated and nothing about it changes once it is posted.
- A lender sets the amount, collateral, flat interest and term
- The protocol fee and late fee are fixed into the offer at posting
- Offers can fill in parts, across several borrowers
- The offer token is the only key to cancel, collect and seize
- Repayments are collected, not delivered; there is no deadline
- Seizing is the lender's action, after the grace window closes
How an offer works
| Part | What it means |
|---|---|
| Amount | How much of that market's lending token is on offer. It leaves the wallet when the offer is posted and is held by the protocol until it is borrowed or the offer is cancelled. |
| Collateral | Which token a borrower must put up, chosen from that market's accepted list, and how much of it per amount borrowed. It is stated as an amount of tokens, not as a percentage of value. |
| Interest | A flat charge over the whole term, expressed as a percentage of the amount borrowed. It is not a yearly rate. 5% on a 14-day loan means a borrower repays 5% more than they borrowed, after 14 days. The interface may also show the equivalent yearly figure for comparison. |
| Term | How long a borrower has, chosen from that market's list of terms. Each term comes with its own grace window, fixed per market. |
Two more figures are set per market rather than by the lender, and are fixed into the offer at posting: the protocol fee, a percentage of the interest that AMP Finance keeps when a loan is repaid, and the late fee, a percentage of the principal that a borrower pays if they repay during the grace window, which goes entirely to the lender.
Offers can fill in parts
A borrower does not have to take an entire offer. An offer for 1,000 sUSDC might be drawn as 100 by one borrower, 500 by another and 400 by a third, each becoming its own loan with its own due date. The board shows how much of each offer is still available. Every loan drawn from an offer carries the offer's exact terms, scaled to the amount drawn. A lender who would rather the offer fill all at once can post smaller offers instead.
Collateral is fixed in tokens
The collateral a lender asks for is a quantity, say 3 sNIGHT for every 1 sUSDC borrowed. The protocol has no price feed, so it never converts that to a value and never adjusts it. The interface shows a rough value comparison at today's prices as a guide, but nothing on the ledger enforces it. Deciding how much collateral is enough, and for which token, is entirely the lender's judgement. Lending returns and risks explains why this matters more than it might seem.
The offer token
Posting an offer sends an offer token to the lender's wallet. It is the only key to that offer: it is needed to cancel the offer, to collect each repayment, and to take the collateral if a loan defaults. One token covers the whole offer, however many loans come out of it. Positions and recovery explains how to look after it.
Posting an offer
Offers are posted from the Lend page, or from the Lend button on a market's page (it reads Lend sUSDC in the USDC market). Both use the same form. It needs a connected wallet holding the shielded lending token (sUSDC for the USDC market, sADA for the ADA market) and some DUST for the fee.
- Choose a market. This fixes which token is being lent and which collateral tokens can be asked for.
- Enter the amount to lend. The whole amount leaves the wallet when the offer is posted.
- Choose the collateral token and amount. Where prices are available, the form opens on roughly twice the lending amount by value and offers quick picks of 1.25, 1.5 and 2 times. The amount can be changed freely. It is an amount of tokens, fixed for the life of the offer.
- Set the interest. A flat percentage over the term, within that market's interest range. The form opens on 5%.
- Choose the term. The list shows each term with its grace window.
- Review. The review shows the whole offer once more (see below), asks for acceptance of the Terms and Privacy Policy, and then Post offer asks the wallet for one approval.
The summary beside the form updates as the fields change: what goes in, what backs it, and what it earns if fully repaid. The review step adds three things worth reading:
- What you earn: the interest less the protocol fee if every loan is repaid within the term, and up to that plus every late fee if loans are repaid during grace. Nothing if a borrower never repays; the collateral comes instead.
- No automated liquidation: a reminder that the collateral is never sold when its price moves, and only becomes the lender's after a loan has run its term and grace window.
- You get an offer token: a reminder to keep it in this wallet until the last loan is settled.
After posting, the offer appears on the board with no name attached, and the offer token arrives in the wallet when the transaction confirms. From then on the offer is managed from its own page or from the Open offers tab of Positions. Two things are fixed at this moment and never change: the protocol fee rate and the late fee rate that market had when the offer was posted.
If the form refuses
| Message | Reason |
|---|---|
| Below the smallest offer | Every market has a minimum offer size. Minimum sizes. |
| Interest outside the range | The interest range is shown on the market page. |
| This market's fees changed while you were composing | The market's rates were updated between opening the form and submitting. Reload and review again. |
Managing an offer
Once posted, an offer runs on its own. Borrowers draw from it without the lender's involvement. What the lender does afterwards is collect, and occasionally cancel or seize. Every one of these actions needs the offer token in the connected wallet.
An offer's page shows how much has been drawn, how much remains, and each loan that came out of it with its status. The Open offers tab of Positions lists every offer this wallet holds a token for, and the To do list on Positions points out anything ready to collect or seize.
Cancelling
Cancelling returns whatever has not been borrowed to the lender's wallet and takes the offer off the board. Loans already drawn from it are unaffected: they run to their own due dates, and the lender still collects on each one with the same offer token. An offer that has been fully drawn has nothing left to cancel; it stays as a record that its loans point to.
Collecting a repayment
When a borrower repays, the money is held for the lender rather than pushed to them. The lender collects it with Claim repayment on the loan's page. What arrives is the principal, the interest less the protocol fee, and the late fee if the borrower repaid during the grace window.
There is no deadline on collecting; a repayment waits as long as it needs to. Each loan's repayment is collected separately, one transaction each. Because one offer token covers the whole offer, collections on the same offer happen one after another rather than at the same time.
Taking the collateral
If a loan is not repaid by the end of its grace window, the lender can take the collateral with Seize collateral on the loan's page. All of it comes to the lender's wallet, in the collateral token, and the loan closes for good. Nothing is sold, nothing is auctioned and nothing is left over for the borrower.
Seizing is the lender's action and nobody else's. The protocol does not seize automatically, and until the lender does, nothing happens. Repayment, however, is closed the moment the grace window ends, whether or not the lender has acted. Default and seizure has the full timeline.
The offer token is the only key to all of the above. Losing it or sending it to another wallet leaves every uncollected repayment and every seizable collateral on that offer stranded. Keep it in the wallet until the last loan drawn from the offer has been settled and collected. Losing or sending a position token spells out the consequences.