For Lenders
Complete guide to earning yield on Coalesce Finance.
Overview
As a lender, you:
- Deposit USDC into markets
- Earn fixed interest over time
- Withdraw after maturity
Deposits
Onchain Transactions
When you deposit, your USDC is sent to the loan market and you receive shares (a scaled balance). Your share count stays constant while the scale factor grows to reflect accrued interest. See Protocol Calculations for exact conversion formulas.
Deposit Errors
Common failures are listed in Error Codes.
Position Details
Each position shows:
| Field | Description |
|---|---|
| Market | The market you deposited into |
| Borrower | Who's borrowing the funds |
| Deposited | Your original deposit amount |
| Shares | Your scaled balance |
| Current Value | Deposit + accrued interest |
| APR | Annual interest rate |
| Maturity | When you can withdraw |
Withdrawals
No withdrawals are allowed before maturity. After maturity, a 5-minute grace period allows the settlement factor to be set before any withdrawals.
Steps
- Go to "My Positions" and find the matured market
- Review the settlement factor (determines your actual payout)
- Optionally set a minimum acceptable payout (slippage protection)
- Click "Withdraw" and approve the transaction
- Verify USDC received in your wallet
Payout Calculation
Your payout depends on interest accrued and the settlement factor. See Settlement and Protocol Calculations for exact formulas and examples.
Withdrawal Errors
Common failures are listed in Error Codes.
Risks
Borrowers may not repay their loans, leading to a loss of deposited funds.
As a lender, you take on the credit risk of the borrower. You may lose your entire deposit if the borrower defaults. Research the borrower fully and don't deposit more money than you are comfortable losing.
A full list of risks can be found in Risks.