Ribbon Finance
  • Introduction to Ribbon Finance
  • Aevo
  • FAQ
    • General
    • DOV Deposits
    • DOV Withdrawals
    • DOV Trading and options
    • Ribbonomics
  • Dune dashboards
  • Contribute
  • Security
  • Ribbon Theta Vaults
    • Introduction to Theta Vaults
      • Strike Selection and Expiry
      • Options Architecture
      • Options Settlement
      • Auctions
      • Risk profile
      • Fees
    • Theta vaults architecture
    • User guides
      • How to deposit
      • How to withdraw
      • How to pause and resume
      • How to stake, unstake vault shares and claim rewards
      • How to transfer vault positions
      • How to participate in Paradigm Auctions
      • How to redeem oTokens
  • RIBBON EARN
    • Introduction to Ribbon Earn
    • Ribbon Earn USDC
      • Risk-Free Rate
      • Twin win strategy
      • Vault specifications
      • Eligibility
      • Fees
    • Ribbon Earn stETH
      • What is a dolphin strategy?
      • Vault specifications
      • Risk profile
      • Fees
  • RIBBON LEND
    • Introduction to Ribbon Lend
      • Yields from unsecured lending
      • No lockups
        • Pool status
        • Default
      • Off-chain enforcement / credit underwriting
      • Built-in insurance
      • Fees
  • ribbon treasury
    • Introduction to Ribbon Treasury
      • Why Ribbon Treasury?
      • Partners
      • How to get involved
  • Ribbonomics
    • Overview and RBN tokenomics
      • Vote-Escrowed RBN
      • Fee Collection and Distribution
      • Liquidity Gauges and RBN Emissions
      • Gauge Weight Voting
      • Bribes
        • Guide to Boost Bribing
          • For Bribers
          • For veRBN Holders
      • Upgrades
    • How to lock RBN, boost and claim protocol revenues
  • Developers
    • Deployed Contracts
    • Ribbon Subgraph
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  1. RIBBON LEND
  2. Introduction to Ribbon Lend

No lockups

PreviousYields from unsecured lendingNextPool status

Last updated 2 years ago

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Most unsecured loans in DeFi are still fixed term — this means that lenders must wait until the loan maturity to exit their position. This leaves a significant void for on-chain USDC holders who are willing to lend unsecured but are unwilling to lock their capital. As DeFi users ourselves, we recognize the immense opportunity cost with being locked in a position.

Ribbon Lend operates like Aave — a peer-to-pool mechanism that sets rates based on . As long as there is liquidity in the pool, users can exit their loans instantly, and accrue interest only for as long as they have been in the pool. Ribbon Lend’s pools use a utilization curve that incentivizes borrowers to leave some liquidity in the pool to facilitate withdrawals.

Withdrawing is equivalent to making a token redemption for your rTokens: you return them in exchange for your capital.

utilization of funds in the pool