FAQ

Common questions about using Floe.

General

What is Floe?

Floe is a peer-to-peer, intent-based lending protocol on Base. Users create intents specifying their lending or borrowing terms, and solvers match compatible pairs to create loans.

How is Floe different from Aave or Compound?

Feature	Floe	Aave/Compound
Architecture	P2P intent matching	Liquidity pools
Rates	Negotiated	Algorithmic
Counterparty	Single (known)	Pool (anonymous)
Risk	Isolated per loan	Shared across pool
Terms	Custom	Standardized

What blockchain is Floe on?

Floe is deployed on Base Mainnet (Chain ID: 8453), an Ethereum Layer 2.

What tokens are supported?

Floe supports 4 tokens across 4 active markets:

• Loan tokens: USDC, USDT

• Collateral tokens: WETH (Wrapped ETH), cbBTC (Coinbase Wrapped BTC)

Active markets: USDC/WETH, USDC/cbBTC, USDT/WETH, USDT/cbBTC

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Borrowing

How do I borrow USDC or USDT?

1. Connect wallet with ETH on Base

2. Create a borrow intent with your terms

3. Wait for a lender match

4. Receive USDC or USDT (minus matcher fee)

What collateral do I need?

You need WETH (Wrapped ETH) or cbBTC (Coinbase Wrapped BTC), depending on which market you choose. Your collateral must be worth more than your loan amount:

• Minimum: Enough to meet your specified LTV

• Recommended: Extra buffer for price volatility

What is LTV?

Loan-to-Value ratio = Loan Amount / Collateral Value

Example: $5,000 loan with $10,000 collateral = 50% LTV

What happens if I don't repay on time?

Your loan becomes overdue and can be liquidated. A liquidator will pay off your debt and take your collateral.

Can I repay early?

Yes. Under the default Flexible term protection, there's no prepayment penalty — you only pay interest for the time you actually borrowed. Penalty-based and No Prepayment term options are coming in v2.

Can I add more collateral?

Yes. Go to your loan in the Loans page and click "Add Collateral" to improve your LTV.

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Lending

How do I earn interest?

1. Create a lend intent with your terms

2. Wait for a borrower match

3. Earn interest over the loan duration

4. Receive principal + interest at repayment

What rates can I expect?

Rates are market-driven. Typical ranges:

• Conservative: 4-6% APR

• Moderate: 6-8% APR

• Higher risk: 8%+ APR

Can my lend intent be partially filled?

Yes, if you enable allowPartialFill. Your intent can match multiple borrowers until fully filled.

What if the borrower doesn't repay?

If the borrower's LTV exceeds the liquidation threshold or the loan becomes overdue:

• Liquidators pay off the debt

• You receive full repayment (from liquidator)

• Borrower loses collateral

In rare underwater cases, you may experience bad debt.

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Intents

What is an intent?

An intent is an on-chain declaration of your desired terms. It's not a loan—it's an offer that can be matched.

How long do intents last?

You set the expiry when creating an intent. Common choices:

• 7 days (typical)

• 14 days (patient)

• 24 hours (urgent)

Can I cancel my intent?

Yes, as long as it hasn't been fully matched. Cancellation returns your deposited collateral (borrowers) or releases your USDC allowance (lenders).

Why hasn't my intent been matched?

Possible reasons:

• Your rate expectations don't overlap with available counterparties

• Matcher commission is too low (solvers don't find it profitable)

• Not enough market activity

• Duration or LTV incompatibility

Try adjusting your terms to be more competitive.

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Loans

How is interest calculated?

Interest = Principal × (APR / 365) × Days

Example: $5,000 at 6% APR for 30 days = $24.66

Can I extend my loan?

Not directly. You would need to repay and create a new borrow intent.

Can I transfer my loan to someone else?

No. Loans are non-transferable.

What is the liquidation bonus?

Liquidators receive a 5% bonus on collateral value as incentive to liquidate unhealthy loans.

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Liquidation

When can my loan be liquidated?

Your loan can be liquidated when:

1. LTV exceeds threshold: Your current LTV goes above the liquidation LTV (lender's maxLTV)

2. Loan is overdue: Duration has passed and you haven't repaid

What is the 8% LTV gap?

Floe requires at least 8% gap between:

• Origination LTV (your borrowing level)

• Liquidation LTV (when liquidation is allowed)

This ensures borrowers have buffer from day one.

What happens when I'm liquidated?

1. A liquidator pays your debt (principal + interest)

2. The liquidator receives your collateral

3. You lose all collateral but owe nothing more

Can I prevent liquidation?

Yes:

• Add collateral before reaching threshold

• Repay the loan early

• Monitor prices during volatile markets

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Technical

What is a solver?

A solver (or matcher) is an automated bot that finds and matches compatible intents. Solvers earn the matcher commission.

What is the circuit breaker?

The circuit breaker pauses protocol operations when oracle data is unreliable (stale, invalid, or deviating too much). It protects users from liquidations based on bad prices.

Why did my transaction fail?

Common reasons:

• Intent was already matched (race condition)

• Insufficient token allowance

• Circuit breaker active

• Gas price too low

• Contract paused

Check the Error Codes reference.

How do I get ETH for gas?

Bridge ETH to Base using:

• Base Bridge

• Superbridge

• Centralized exchange withdrawal to Base

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Security

Is Floe audited?

Audit information is available in the Security documentation.

How are my funds protected?

• All loans are overcollateralized

• Dual-oracle system with fallback

• Circuit breaker prevents bad liquidations

• No pool risk (P2P isolation)

• UUPS upgradeable for security patches

Can I lose money?

Borrowers: You can lose your collateral if liquidated Lenders: You can experience bad debt if collateral becomes worthless very quickly

See Risk & Liquidation.

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Lendr AI

What is Lendr?

Lendr is an AI assistant that helps you interact with Floe using natural language. Instead of filling forms, just tell Lendr what you want.

What can Lendr do?

• Create borrow/lend intents

• Check loan health

• Add collateral

• Repay loans

• Explain protocol concepts

• Answer questions

Is Lendr safe?

Yes:

• Lendr cannot access your private keys

• Every transaction requires your wallet signature

• Lendr only reads public blockchain data

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Fees

What fees does Floe charge?

Floe currently charges no protocol fees. You only pay:

• Interest (to lenders)

• Matcher commission (to solvers)

• Gas (to the network)

Why am I paying a matcher fee?

The matcher commission incentivizes solvers to match your intent. Without it, your intent might not get matched.

Can I avoid the matcher fee?

Yes, if you manually match with a counterparty through the UI. But automated solver matching is faster and more reliable.

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Getting Help

Where can I get support?

• In-app: Ask Lendr AI

• X/Twitter: @FloeLabs

• Email: [e-mail]

How do I report a bug?

1. Check if it's a known issue in Discord

2. Report via Discord or email

3. Include transaction hash if applicable

How do I request a feature?

Share your ideas in Discord or tag us on X. We love hearing from users.

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More Questions

Can my loan be partially liquidated?

Yes, for solvent loans (where collateral value exceeds debt). Liquidators can partially liquidate — repaying a portion of the debt and receiving proportional collateral. This reduces your position size rather than closing it entirely. Underwater loans (where collateral value is less than debt) must be fully liquidated.

Is LendrBot available on Telegram?

Yes. LendrBot is now available on Telegram for chatting about your positions, creating intents, and getting help. Search for LendrBot on Telegram or visit t.me/LendrBot.

What markets are available?

Floe has 4 active markets: USDC/WETH, USDC/cbBTC, USDT/WETH, and USDT/cbBTC.

Is Floe tracked on DefiLlama?

Yes. Floe's TVL is tracked on DefiLlama.

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Glossary

Term	Definition
APR	Annual Percentage Rate - yearly interest
bps	Basis points - 100 bps = 1%
Intent	On-chain offer to lend or borrow
LTV	Loan-to-Value ratio
Matcher/Solver	Bot that matches intents
Oracle	Price data source (Chainlink/Pyth)
Principal	Original loan amount
WETH	Wrapped ETH (ERC-20 version of ETH)
cbBTC	Coinbase Wrapped BTC (ERC-20 version of BTC)