Lending
Deposit USDC. Earn yield. No price risk.
Traders who use leverage (borrowing to amplify positions) or short selling (profiting when prices go down) need capital. They borrow from lending pools and pay interest. You collect.
How It Works
- Deposit USDC into a lending pool.
- Traders borrow from the pool and pay interest.
- You earn APY continuously.
- Withdraw anytime. If the pool is fully borrowed, you wait until capital frees up.
Your USDC stays as USDC. You are not exposed to any asset price movement. You earn from the people who are.
Why Rates Vary
Assets with more trading activity have higher borrowing demand. A popular asset with big discount swings might pay 14% APY. A stable one might pay 4 to 5%.
Each pool shows current APY, utilization, total deposits, and total borrowed.
Risk
Utilization. If the pool is 100% borrowed, you cannot withdraw until traders close positions. As utilization rises, rates spike, which incentivizes borrowers to close and frees up capital.
Smart contract. Your USDC is held in smart contracts (programs that run on the blockchain and execute automatically). Smart contracts can have bugs. Navy's contracts are audited by third party security firms, but no audit eliminates all risk.
You are not exposed to asset price risk. Borrower collateral and automated liquidations protect the pool.
Fees
10% reserve factor on interest. No deposit or withdrawal fee.