How to Lend
Lending is how you earn yield on USDC without custody risk. You supply USDC to the protocol vault; borrowers borrow it against their tokenized-stock collateral and pay interest; you receive that interest as yield, compounded daily.
Step 1: Supply USDC
Navigate to the Earn section of the Tessera app. Enter the amount of USDC you want to supply. Approve the vault to spend your USDC. Click Supply. Your USDC is now in the vault.
What Happens to Your USDC
You receive lending shares, a claim on a growing USDC pool. As borrowers repay loans plus interest, each share's value increases. You don't actively manage anything; interest accrues passively. Your dashboard shows your balance and yield earned.
Your Yield Rate
The yield you earn is determined by supply APY, which varies based on how much of the USDC pool is currently borrowed. Higher utilization means higher yield. Lower utilization means lower yield. This incentivizes lending when demand is high.
The protocol charges borrowers a 15% reserve factor on interest payments, a cut going into the protocol reserve for safety. This does not affect your yield.
Step 2: Withdraw Your USDC
At any time, go to the Earn section and click Withdraw. You'll receive your original USDC plus all accrued interest. Withdrawal is instant if liquidity is available.
Key Points
- No minimum supply, but 100 USDC total debt in the system keeps dust off the books.
- Your USDC earns yield every block. Check your dashboard.
- Withdraw anytime liquidity permits. No lock-up period.
- Interest is paid by borrowers; you don't pay fees to lend.
- On testnet, no insurance. Risks include smart-contract flaws, oracle failures, and cascade.