Farmer/Lender Workflow

This guide explains how to interact with the Smart Contract as a Lender/Farmer. The process allows you to earn fixed-rate yields through token swaps and strategic holding or selling of FT tokens. Below is a detailed breakdown of each step in the process.

Lending Flow

Step 1: Initial Deposit

The Lender/Farmer deposits underlying tokens into the Smart Contract.

• Example: Deposit 90 USDC

• This initiates the trading process

Step 2: Token Operations

After depositing, two operations occur:

• The Smart Contract swaps the deposited tokens for FT/XT

• Then automatically sells XT

• You receive FT tokens in return

Step 3: Redemption Options

You have two options for managing your FT tokens:

Option 3.a: Hold Until Maturity

• Hold your FT tokens until the maturity date

• Redeem them for the Underlying Tokens

• Example: Receive 100 USDC at 11.11% fixed rate

Option 3.b: Early Exit

• Sell your FT tokens before maturity

• Receive Underlying Tokens immediately

• Example: Receive 98 USDC, earning 8.89% of interest rate