USDC.e & USDC Lending

Overview

The USDC.e & USDC Lending pools under the Pay-in-Advance Model will provide lending capital to strategic vaults as the LP underlying. This enhance the capital efficiency with a sharing of lending capital, and thus maximizing the rewards shared to the pool.

Stablecoin lending vaults is designed for low-risk stablecoin holders who are looking for higher returns than traditional lending, while still maintaining principal-protection. With its innovative pay-in-advance mechanism, the lending vault offers a unique investment opportunity for those seeking a secure and profitable investment.

Lending Capital	Supporting Strategic vaults
USDC.e	HLP Leverage, VLP Leverage, ALP Leverage
USDC	GM Leverage, GM Leverage (Neutral)

Mechanism

Stablecoin Lending pools will provide funding to corresponding strategic vaults to leverage the LP position:

1. Deposit stablecoins into strategic vaults to mint PerpDex LP.

2. Get a unique hybrid Pay-in-Advance reward from the protocol, determined by leveraged positions’ past performance.

3. The protocol collects a reward split from positions when they're closed, considering their Leverage Size.

Principal-protected

As a stablecoin low-risk saving vault, the team has executed comprehensive risk mitigation to affirm its principal-protected nature. Those include:

1. Debt-to-Value (DTV) Ratio monitoring

2. Liquidation Mechanism

3. Debt Adjustment

4. Maximum lending limit to a Strategic Vault