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Lend

Learn how to lend assets on Covenant

About

To lend on Covenant, users swap a basis currency for zTokens. All loans are over-collateralised, which means that users must deposit more value into the protocol than they can borrow. There are two interfaces for lending on Covenant, 'retail' and 'pro.' Both perform the same actions, swapping a basis currency for zTokens, but the 'pro' UI is for more sophisticated users and traders who would like more granular control of their transactions.

Step-by-step 'retail' version

  1. 1.
    Starting from the dashboard page, navigate to the guild for which you would like to lend buy clicking 'Manage.'
  2. 2.
    Making sure that 'Retail' is selected on the slider in the upper righthand corner, click the 'Supply' tab from the right-hand window, pictured below. Enter your desired supply amount and click 'Supply {loan currency}.'
  3. 3.
    Approve the necessary transaction approvals in your wallet. Once approved, your debt and position summary stats will be updated to reflect the newly issued loan. Note, the borrower APY, below at 4.18%, is floating, not fixed, and is determined by the zToken spot price. The zToken price and the interest rate are inversely related. Also note, your wallet balance, highlighted below in pink, reflects your newly issued loan amount.

Step-by-step 'pro' version

  1. 1.
    Starting from the dashboard page, navigate to the guild for which you would like to lend buy clicking 'Manage.'
  2. 2.
    Make sure the swap interface is configured to swap the loan currency for zTokens, not the other way around. If it isn't, click on the highlighted button below to switch the swap direction.
  3. 3.
    Enter the number the amount of basis currency you would like to swap for zTokens. Click 'Submit' and approve the necessary transaction approvals through your wallet.
  4. 4.
    Your lending and position summary stats will reflect your newly supplied loan (i.e. purchase of zTokens).