PsyLend FAQs

Is PsyLend Open Source?

While in active development, PsyLend is not open source, however it will be open sourced as soon as active development has completed.

Are You Audited?

Yes, the protocol has been audited by Kudelski. Results from audit will be published as soon as a full report is ready.

What happens if PsyLend Takes on Bad Debt (Liquidity Risks)?

PsyLend has an protocol insurance fund that is seeded with 100k USDC that will serve as a backstop for bad debt. Please refer to Risks section for more details.

What Happens if a Lending Market Has 100% Utilization?

When the utilization rate is close to 100%, it may not be possible to withdraw assets until some borrowers have repaid their debts, or other lenders come forward to offer capital. During these scenarios, interest rates will be generally at the highest point in the interest rate curves to incentivize more deposits and borrowers to repay their debt. Withdrawals are enabled once again when borrowed assets are paid back or new deposits are added to the lending market.

Why Can’t I Borrow Up to my Liquidation Point?

To prevent users accidentally borrowing their maximum amount up to liquidation, PsyLend will enforce a maximum borrow of ~90% of assets allowable before liquidation. This buffer allows room for fluctuations in asset and collateral prices to reduce user liquidation risk.

Where Do I Get Vault Tokens?

Currently, PsyLend supports vault LP tokens from a variety of PsyFinance covered call and secured put selling vaults. Visit PsyFinance and deposit into a supported vault. Deposits will convert into vault tokens when new options are minted, generally 0900 UTC each Friday. Users will receive vault tokens in return that can be supplied into the PsyLend protocol.