Lenders
Lenders — Docs (XVault)
Lending is on the roadmap. At MVP there is no dedicated lending module. Lenders can still participate by depositing assets into relevant vaults, holding or trading vault tokens (ERC-20), or providing market liquidity on Uniswap. The dedicated lending flows described below arrive post MVP. See the roadmap for sequencing.
Who can be a lender
Asset finance firms and inventory financiers who originate loans against physical assets and may repossess assets on default.
Specialty lenders, pawn and collateral lenders with pipelines of authenticated goods.
Private credit funds and family offices seeking secured, on-chain yield with transparent market pricing.
Market makers or dealers who carry inventory and want balance sheet liquidity without immediate retail sale.
Corporate treasuries and DAOs that prefer hard-asset correlated exposure over pure crypto credit.
Reference material on asset-based lending and collateral controls is widely available, for example OCC guidance and standard ABL definitions.
What lenders can do today (MVP)
Monetize repossessed or owned assets
If you hold eligible assets, you can deposit them into the matching vault. You transfer the asset’s asset claim token (ERC-721) to the vault and receive vault tokens (ERC-20) minted at the pool price. You can then hold, sell on Uniswap, or use the tokens in over-the-counter financing arrangements.
Provide liquidity on Uniswap
You can supply USDC and vault tokens to the canonical Uniswap pool and earn swap fees. Price is formed algorithmically in the pool. See the LP documentation for operational details. Impermanent loss applies at the pool level, but vaults have a liquidation backstop through the underlying assets and distributions to vault token holders. Review custodian policies before committing capital.
The new product: Collateralized credit against vault tokens
Borrowers pledge vault tokens as collateral in a standard pledge agreement. Valuation uses vault pricing with a time‑weighted average price (TWAP) window to reduce manipulation. On breach of maintenance LTV, the lender can seize collateral and sell on Uniswap or hold to receive distributions. This mirrors secured lending and liquidation practices adapted to on‑chain price discovery.
Metrics:
Index price: Uniswap pool TWAP over a configurable window.
Haircut: a safety discount applied to the reference price when valuing collateral. It covers price volatility during liquidation, expected slippage from pool depth, and time or fees to execute.
Initial LTV:
principal / (qty_collateral × haircut × index_price).Maintenance LTV: trigger for margin call or top‑up.
Remedies: seize and sell collateral on Uniswap, or retain exposure and receive EVEC distributions pro rata.
Mechanisms:
Price source: Prices come from the vault. Until the public price API is live, use the Uniswap UI for spot and depth. A TWAP window is recommended for loan math. Custodians and borrowers should not assume external oracles.
LTV and haircut design: Choose haircuts based on pool depth, typical ticket sizes, and expected liquidation pace. Example: if spot is 1.00 USDC, a 30% haircut (collateral factor 0.70), and 100,000 tokens are pledged, then the collateral value used for LTV is 70,000 USDC. Maintenance tests use the same method with current TWAP.
Liquidation path: On default, seize pledged vault tokens. Either sell on Uniswap in clips sized to pool depth or hold the tokens and let distributions arrive if liquidation of underlying assets is underway per the custodian’s sales policy. These are standard secured‑lending concepts applied to token collateral.
5. What lenders should look out for
Custodian selection: Read the custodian’s eligibility, custody, insurance, and sales policies. Prefer vaults that opt in to third‑party audits once available. See Auditors — Docs for the two auditor tiers and how attestations work.
Pool depth and slippage: Review depth and recent volume before sizing loans or planning disposals. Wider haircuts and smaller sale clips are prudent in thin pools.
Legal and operational terms: Define recourse, rehypothecation, custody of collateral tokens, default waterfalls, and tax handling. Align off‑chain agreements with on‑chain realities, especially price sources and distribution mechanics.
7. FAQ
Who can lend
Any compliant entity that can hold tokens and sign standard secured‑lending agreements. Early partners will include asset‑finance lenders and private credit funds.
How is interest paid
Off‑chain in fiat or stablecoins per the loan agreement, with optional on‑chain receipts. Interest is distinct from EVEC distributions, which represent asset exits or yield and flow to current vault token holders.
Do lenders have claim to the physical assets
Lenders who hold vault tokens have indirect economic exposure. Direct claim to a physical item requires holding the corresponding asset claim token and meeting the custodian’s redemption conditions.
Where do I check prices today
On Uniswap. We are building a public price API. Custodians and lenders can request beta access.
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