Frequently Asked Questions
Common questions about Coalesce Finance.
General
What is Coalesce Finance?
Coalesce Finance is a fixed-rate, fixed-term lending protocol on Solana. Lenders deposit USDC to earn predictable returns, while whitelisted borrowers access funds without posting collateral.
How is this different from other lending protocols?
| Feature | Coalesce Finance | Variable-Rate Protocols |
|---|---|---|
| Interest Rate | Fixed at deposit | Changes constantly |
| Term | Fixed maturity date | Open-ended |
| Collateral | None (credit-based) | Required |
| Borrower Access | Whitelisted only | Permissionless |
Is Coalesce Finance audited?
Yes. Audit reports are available upon request. Contact the team for details.
What blockchain does Coalesce Finance use?
Solana.
For Lenders
How do I earn interest?
Deposit USDC into a market. Interest compounds daily until maturity, when you can withdraw. See For Lenders.
What APR can I expect?
APR varies by market and is set by borrowers. Typical rates range from 5-15% depending on term and risk.
When can I withdraw?
After the market's maturity date plus a 5-minute grace period. Funds are locked until then.
What if the borrower doesn't repay?
You receive your proportional share of whatever is in the vault. If the borrower repays 80%, you get 80% of your expected value. All lenders share losses equally.
Can I withdraw early?
No. Funds are locked until maturity. This is by design, as fixed-term loans require a commitment from both sides.
How are my returns calculated?
Returns are calculated based on your shares, the market scale factor, and settlement factor. See Protocol Calculations.
What are shares?
Shares (scaled balance) represent your ownership stake. They're fixed at deposit and converted back to USDC at withdrawal using the scale factor.
For Borrowers
How do I become a borrower?
Contact the Coalesce Finance team, complete KYC/KYB verification, and receive a whitelist entry with a capacity limit. See Whitelisting.
What does it cost to borrow?
You pay the interest rate you set when creating the market, plus the protocol fee on interest. There are no separate flat borrow, deposit, withdraw, or repay fees.
Can I repay early?
Yes. You can repay any amount at any time before or after maturity. Early repayment doesn't reduce interest owed.
What happens if I can't repay?
Lenders receive less than expected (pro-rata via the settlement factor), and your whitelist capacity may be reduced or removed. See Risks.
Can I borrow from my own market?
Technically yes, but it serves no purpose. You'd be lending to yourself and paying fees to the protocol.
Fees
See Protocol Fees. The only fee is a percentage of interest earned — there are no deposit, withdrawal, borrowing, or repayment fees.
Security
Are my funds safe?
Your funds are held in on-chain vaults secured by the Solana program. The main risk is borrower default, not protocol security.
What if the protocol is hacked?
Smart contract risk exists in all DeFi. We mitigate this through audits, conservative code, and bug bounties. However, no protocol is 100% risk-free.
How do I report a bug?
Contact security@coalescefi.com. Do not disclose publicly.
Troubleshooting
If a transaction fails, check the error code in the transaction details. See Error Codes for the full list with descriptions. For programmatic recovery actions, use the SDK's getErrorDetails() function.