User Guide and examples

• Step-by-step guide for new users on how to engage with ioLend.

• Best practices for leveraging, investing, and managing risks.

Guide for 1 click loop:

Users can deposit $IOTA, $USDT, and $ETH as collateral, borrow assets against them, and reinvest those borrowed assets. This process can be repeated multiple times, amplifying the potential of the initial capital. We call this the "Infinite money loop."

There are two main participants in the @iolendfi market:

The Lender: User who deposits his money for others to borrow. The lender receives yield on their deposited assets when it's utilized.

The Borrower: User who borrows money from the lender. The borrower pays interest on the borrowed assets until the loan is repaid.

Here’s an example:

User A has 10 $IOTA tokens and wants to acquire more $IOTA because he believes the price of $IOTA will rise. He can deposit 10 $IOTA into @iolendfi and one click loop it until he reaches up to 3.3x leverage on his initial position.

The user started with 10 $IOTA in his wallet, and now he is earning yield on 32.35 $IOTA. This means, the user borrowed 22.35 $IOTA tokens on which he has to pay interest now. Even thought borrowing interest is higher than lending interest, he will also earn $IOL token which makes his loop profitable.

In order to earn the $IOL token incentives on the deposit/borrow user needs to hold 5% of his total deposit/borrow balance in $IOL - $IOTA token LP which can be "Zapped in" on top of the page. Once the requirement is met, user is earning $IOL token emissions.

Risk Management!

While infinite money loops offer high yield potential, they also carry risks. Make sure to monitor your position in order to not get liquidated during volatile market movements.