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Borrowing

How loans work

A Lendly loan is a Kamino Lend loan: you deposit collateral, you borrow USDC against it, interest accrues on what you owe, and you can repay at any time. There is no term and no schedule.

Collateral

Collateral is the xStocks you deposit. You can deposit several different xStocks into one loan; together they back your debt. While deposited, your xStocks keep tracking their share price — you keep the upside and the downside.

Loan-to-value

Loan-to-value (LTV) is what you owe divided by what your collateral is worth.

LTV = debt ÷ collateral value

Deposit $10,000 of SPYx and borrow $3,000 of USDC, and your LTV is 30%. If SPYx rises, your LTV falls. If it drops, your LTV rises.

Two limits per asset

Every collateral asset has two numbers, set by Kamino and shown live on Supported collateral:

  • Max LTV — the most you can borrow against it. A borrow or withdrawal that would take your loan above this is refused.
  • Liquidation LTV — the point at which the loan can be liquidated. It is always higher than the max LTV; the gap is your buffer.

With several assets, your loan’s limits are the value-weighted blend of each asset’s limits.

Borrow limit = Σ (collateral value × max LTV)

The dashboard shows your borrow limit and how much is available to borrow — the borrow limit minus what you already owe.

Interest

You pay a variable annual rate (APY) on your USDC debt. It is set by Kamino’s market and moves with demand: the more of the pool’s USDC is borrowed, the higher the rate. Interest is added to your debt every second; there are no payments to make while the loan is open.

The current rate is shown in the app on every borrow and on the Markets page.

Each borrow also carries a one-time Lendly fee of 1% of the amount, taken from the USDC you receive. See Fees and rates.

Repaying

Repay any amount at any time. Repaying lowers your LTV and pushes your liquidation price down. When you repay in full, Lendly sends a tiny amount extra to cover interest that accrued while you were signing — Kamino only ever takes what is owed.

Withdrawing

You can withdraw collateral whenever the loan stays within its max LTV afterwards. With no debt, you can withdraw everything. The app shows the maximum you can withdraw for each asset.

Market liquidity

You borrow from a shared pool of USDC supplied by lenders on Kamino. If most of it is already borrowed, a large borrow may not be possible until lenders add more or borrowers repay. The available amount is shown live on the Markets page.