Earn: lending vaults

USDG vault#

The USDG vault is the LendingPool: a passive ERC-4626 pool funded by outside depositors. Only the CreditManager can borrow from it, and only into Prime Accounts, whose borrowed funds never leave the account. The treasury has no special claim on the pool.

• The interest rate follows a kinked curve on utilisation.
• The pool's share price never falls on a borrow or repay; this is fuzz-tested.
• Donations cannot move the share price: accounting uses an internal cash counter.
• Bad debt, if any, is written off against pool shares after the insurance fund.

Stock lending vaults#

Each stock token gets its own LendingPool instance. Short sellers in Prime Accounts borrow from it, and their interest is your yield. Rates rise with utilisation; withdrawals wait while every token is lent out.