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What is Lending?
Updated over 4 months ago

What is Lending?

Lending is a service under Bake Earn that lets you lend out crypto assets to earn rewards. Bake currently provides this service through Compound, a popular DeFi lending market, for USDC and USDT, and we are looking to support other popular DeFi protocols soon.

Where do yields come from?

For USDT and USDC, your funds will be allocated to Compound, a popular DeFi lending market where suppliers of liquidity earn yields accrued from borrowers. For Compound, yields are algorithmically determined based on various factors, including liquidity supplied, borrowing rates, among others.

Are the APYs fixed or floating?

The APY for each product is shown in real time and is subject to changes, which is largely depending on the DeFi protocol mechanics that your crypto assets are allocated to.

Can I cancel my pending order?

You have to cancel your pending order before the cut-off time, otherwise it will be processed in the following term.

Can I update my pending order?

You cannot edit an existing order, but you can cancel it and place a new one. Additionally, you can place multiple entries if you want to increase your allocation.

When does Bake process my orders?

For our current Lending service, orders are processed and settled every Monday at 10:00 am SGT and may take up to 24 hours thereafter to reflect in your portfolio. You can make multiple orders before the cut-off, which will be consolidated into one lump sum for processing. Missed the cut-off? Your orders will be processed the following settlement time.

How do I see my returns?

Your returns will be calculated at settlement time depending on the specific service, and the exchange rate will be updated to reflect the returns, yields or rewards accrued, less our service fees for providing the service. Orders will be processed using the updated exchange rate.

How much do I have to pay in fees?

No fees will be charged when entering or exiting. Bake earns by taking a small fee from your rewards. The APY you see will be net off Bake’s fees.

Are my positions auto-renewed?

All entries will remain in the product until you place an order to withdraw. When you place an order to withdraw, your order will be processed at the settlement time of the specific Lending service (i.e. every Monday at 10:00 am SGT). You will receive your funds back thereafter.

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