Lending

Overview

Flux Finance is a peer-to-pool (p2pool) lending protocol. Lenders supply assets to a market (i.e. deposit assets in a pool), and collectively earn interest (i.e. the supply rate) for the assets in it. The protocol then makes these assets available to borrowers, who deposit other assets into the protocol as collateral.

Users can become lenders by depositing assets to mint fTokens. The interest earned by the protocol isn't distributed; instead, the exchange rate for fTokens increases, and users will be able to redeem more assets over time as interest is earned. The interest rate earned by lenders (supply rate) fluctuates and depends on the market's utilization (i.e. the percentage of deposited assets that has been borrowed).

Though unlikely, it's possible for lenders to lose funds in extreme situations if the protocol accrues bad debt. Refer to Liquidations for more details.

info

fTokens are a fork of Compound V2's cTokens, with additional functionality to support permissioned assets (e.g. OUSG). Refer to the Compound V2 docs for technical details on minting and redeeming fTokens.

Instructions

Minting

1. Visit the Flux web app at fluxfinance.com.

2. Click "Connect Wallet" on the top right.

3. On the Dashboard, click the asset you want to lend under "Supply Markets"

4. Click "Enable" and complete the transaction. This transaction enables Flux Finance to access your asset.

5. Enter the amount you'd like to supply (i.e. lend).

6. Click "Supply" and complete the transaction. This transaction deposits your assets and mints the corresponding fToken.

Redeeming

1. Visit the Flux web app at fluxfinance.com.

2. Click "Connect Wallet" on the top right.

3. On the Dashboard, click the asset you want to lend under "Supply Markets"

4. Click the "Withdraw" tab on the modal.

5. Enter the amount you'd like to withdraw.

6. Click "Withdraw" and complete the transaction. This transaction burns your fTokens and redeems the corresponding underlying assets.