Lenders — How to Lend
Earn interest by lending USDT or USDC to borrowers on Floe.
Overview
Lending on Floe works through intents:
Match existing intents in Earn Offers screen
or create a loan book
If you create an intent, Solvers match you with compatible borrowers
Borrower deposits collateral, you provide USDC or USDT
Earn interest until repayment
Before You Start
You'll need:
USDC or USDT on Base
ETH for gas fees
Wallet connected to Base Mainnet
Understand:
Your USDC or USDT is locked in the loan until repayment
Borrowers provide WETH or cbBTC or another collateral (overcollateralized)
In extreme cases, you may receive collateral instead of USDC or USDT
Step-by-Step Guide
1. Go to Lender Workspace
Navigate to app.floelabs.xyz and click Earn.
2. Review Borrow Requests
The marketplace shows borrower intents with:
Amount Requested: USDC they want to borrow
Collateral: ETH they're offering
Max Rate: Highest rate they'll pay
Duration: How long they need it
Matcher Commission: What solvers earn
3. Choose a Preset (Recommended)
Floe offers preset templates to help you get started with well-calibrated parameters:
Conservative
Higher
Lower
Shorter
Lower risk, fewer matches
Balanced
Moderate
Moderate
Moderate
Good trade-off
Aggressive
Lower
Higher
Longer
More matches, higher risk
Custom
You set
You set
You set
Full control
Select a preset to auto-populate all fields, then adjust individual parameters if needed. The form starts in Custom mode by default.
4. Set Your Lend Intent Parameters
Click "Create Lend Intent" and enter:
Amount
Total USDC or USDT to lend
10,000 USDC
Min Fill Amount
Minimum per match
1,000 USDC
Min Interest Rate
Lowest APR you'll accept
5%
Max LTV
Liquidation threshold
80%
Duration
Maximum loan length (1W, 1M, 3M, 6M, or 1Y)
3M
Allow Partial Fill
Match multiple borrowers?
Yes
Expiry
How long intent stays active
14 days
Duration Buckets
Instead of typing an arbitrary number of days, select from predefined duration options: 1 Week, 1 Month, 3 Months, 6 Months, or 1 Year (7, 30, 90, 180, 365 days). These standard durations improve matching compatibility since borrowers also pick from the same set.
5. Configure Term Protection
Under Early Repayment Terms, choose how borrowers can repay early:
Flexible
Borrower can repay anytime with no penalty (default)
Penalty
Borrower pays a fee for early repayment (coming in v2)
No Prepayment
Borrower must wait until maturity (coming in v2)
Currently, Flexible is the active option. Penalty and No Prepayment options will be enforced on-chain in a future release.
6. Review Risk Preview
Before submitting, the Risk Preview panel shows a real-time assessment of your intent:
Risk Level Badge — Safe, Moderate, High, or Critical based on the gap between max LTV and liquidation threshold
Estimated Yield — Projected earnings based on your rate and duration
LTV Buffer — How much room exists between the borrower's starting LTV and your liquidation threshold
Warnings — Contextual alerts if your settings are aggressive (e.g., thin margin between max LTV and liquidation)
This updates live as you adjust any parameter.
7. Understand Your Terms
8. Approve and Submit
Click "Approve"
Confirm in your wallet
Click "Create Intent"
Review the Confirmation Modal — a summary of all parameters, risk level, estimated yield, and any warnings appears before the transaction fires
Click "Confirm" to sign the transaction
9. Wait for Match
Your intent is now live. Solvers will match you when they find compatible borrowers.
With partial fill enabled, your intent can match multiple borrowers until fully utilized.
10. Loan Active
Once matched:
Your USDC or USDT goes to the borrower
Borrower's collateral (cbBTC, WETH) is held as collateral
Interest accrues in your favor
View your loans in Loans page
Understanding Returns
Interest Calculation
Expected Returns Table
$5,000
5%
$20.55
$41.10
$61.64
$5,000
7%
$28.77
$57.53
$86.30
$10,000
5%
$41.10
$82.19
$123.29
$10,000
7%
$57.53
$115.07
$172.60
Understanding Collateral
Max LTV Setting
Your Max LTV becomes the liquidation threshold for matched loans:
Higher Max LTV = more matching opportunities, higher risk
Lower Max LTV = fewer matches, more protection
70%
Conservative
Larger collateral buffer
75%
Moderate
Good balance
80%
Standard
Common setting
85%
Aggressive
Higher risk
The 8% Gap Rule
Borrowers must maintain at least 8% gap between the Loan LTV and the Liquidation LTV:
Your Max LTV or Liquidation LTV: 80%
Borrower's starting LTV: ≤72%
Minimum buffer from day one: 8%+
Repayment Scenarios
Normal Repayment (Most Common)
Borrower repays before due date
You receive principal + interest in USDC or USDT
Borrower gets their collateral e.g. cbBTC or WETH back
Liquidation (Solvent)
If borrower's LTV exceeds liquidation LTV threshold or loan is overdue:
Liquidator pays the debt
You receive full principal + interest in USDC
Liquidator takes borrower's collateral
Liquidation (Underwater)
In extreme market crashes where collateral value < debt value:
Liquidator pays discounted amount
You receive what's available (may be less than owed)
This is the "bad debt" scenario
Managing Your Positions
View Active Loans
Go to Loans to see your active positions. Each loan card shows:
LTV Donut Gauge — Visual ring showing current LTV vs. liquidation threshold
Hero Stats — Current LTV %, liquidation LTV %, and time remaining at a glance
Health Border — Color-coded accent (green = safe, yellow = caution, orange = warning, red = critical)
Accrued Interest — Real-time interest earned
Expandable Details — Click to see match info, network, parties, and transaction links
Cancel Pending Intent
If your intent hasn't been matched:
Go to My Intents
Click "Cancel"
Your USDC or USDT allowance is released
Risk Management
Borrower Diversification
Don't put all funds in one loan:
Use Partial Fill to spread across multiple borrowers
Set Min Fill Amount (e.g., $1,000)
Duration Limits
Shorter durations = less time for markets to move:
Conservative: 14-30 days
Moderate: 30-60 days
Long-term: 60-90 days
LTV Settings
Balance opportunity vs. safety:
Lower Max LTV = more collateral protection
Higher Max LTV = more matching opportunities
Earnings Example
Tips for Lenders
Start with a preset: Use Balanced or Conservative to get well-calibrated parameters
Check the risk preview: Review estimated yield and warnings before submitting
Enable partial fills: More matching opportunities across multiple borrowers
Set competitive rates: Check market for current rates
Diversify: Spread across multiple loans
Monitor positions: Use the LTV donut gauge on loan cards to track borrower health
Understand liquidation: Know how you're protected
Troubleshooting
Intent not matching?
Your min rate may be too high
Check current market rates
Consider lowering min rate slightly
Transaction failed?
Check ETH balance for gas
Ensure USDC is approved
Verify you're on Base Mainnet
Can't cancel intent?
Intent may be partially filled
Check if any matches occurred
Next Steps
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