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For Lenders (Liquidity Providers Seeking Yield)

Yeap Finance offers various opportunities for lenders to earn yield on their assets, catering to different risk appetites and financial goals.

Seeking Stable, Predictable Yields​

  • Scenario: A risk-averse investor holds stablecoins (e.g., USDC, DAI) and wishes to earn a consistent, low-risk return that outperforms traditional savings accounts.
  • Yeap Finance Solution: They can deposit their stablecoins into a Yeap Finance vault specifically configured with a Fixed Interest Rate Model (e.g., offering a transparent 4-5% APY) or a Variable Rate Model on a high-quality stablecoin vault that historically exhibits low volatility in its interest rates due to deep liquidity and balanced utilization. They receive IBTs, which gradually appreciate in value.

Earning Dynamic, Market-Driven Returns on Volatile Assets​

  • Scenario: A lender holds a major volatile asset like ETH or WBTC and believes its borrowing demand will fluctuate, offering opportunities for higher yields during peak borrowing periods or market volatility.
  • Yeap Finance Solution: They can lend their ETH to a vault utilizing a Dynamic or Variable Interest Rate Model. As borrowing demand for ETH in that vault increases (e.g., during market rallies when traders seek leverage, or during downturns when shorters borrow), the interest rate automatically rises (e.g., potentially from a base of 3% to over 10% APY), maximizing their earnings relative to simply holding the asset.

Supporting and Earning Yield on Niche or Long-Tail Assets​

  • Scenario: A user is an early supporter of a promising new altcoin or a governance token for a smaller project and wants to earn yield on their holdings, but few, if any, established lending options exist for that specific token.
  • Yeap Finance Solution: If the project team or another community member has permissionlessly created a Yeap Finance vault for this altcoin, the user can lend their tokens into this dedicated vault. They contribute to the asset's liquidity and utility within the DeFi ecosystem and earn yield as defined by that vault’s specific IRM and borrowing activity.