> For the complete documentation index, see [llms.txt](https://taolend.gitbook.io/taolend-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://taolend.gitbook.io/taolend-docs/core-features/lend.md).

# Lend

> This section explains how to earn interest as a lender on the Taolend platform.

***

## Lending Overview

### What Is Lending

As a lender, you provide TAO to borrowers by creating Offers (lending orders) and earn interest in return. Taolend uses a P2P Offer matching model, giving you full control over lending terms.

### Lend Flow Diagram

<div align="center"><img src="/files/GuK1nRrLO6UWE341UKoQ" alt="Lend Flow Diagram"></div>

### Income Source

Lender income comes from interest paid by borrowers:

```
Interest paid by borrower = Borrow Amount × Daily APR × Days
Lender earnings = Total interest × 70%
Protocol fee = Total interest × 30%
```

**Example**:

* Borrow Amount: 100 TAO
* Daily APR: 0.1%
* Duration: 30 days

```
Total interest = 100 × 0.1% × 30 = 3 TAO
Lender earnings = 3 × 70% = 2.1 TAO
Protocol fee = 3 × 30% = 0.9 TAO
```

### Offer Mechanism

**What Is an Offer**:

* An Offer is a lending order you create
* It includes Amount, Daily APR, Subnet, collateral requirements, and other terms
* Signed off-chain (no on-chain transaction)
* Borrowers can browse and Accept Loan directly

**Offer Advantages**:

* ✅ Free to create
* ✅ Becomes active immediately and visible in the Market
* ✅ Supports multiple Offers with different conditions
* ✅ Can be cancelled at any time (cancellation is on-chain)

***

## Preparation

### Step 1: Bridge TAO

Before lending, you need TAO on the EVM network:

1. **Bridge TAO**
   * Bridge TAO from the Bittensor network to an EVM network

📖 See details: [Bridge Assets](/taolend-docs/account/bridge-assets.md)

### Step 2: Register an Account

1. **Connect Wallet**
   * Visit [Taolend.io](https://Taolend.io)
   * Click **Connect Wallet**
   * Choose MetaMask or another supported wallet
2. **Register**
   * Go to the **Profile** page
   * Click **Register**
   * Sign a message (off-chain)
   * Confirm the registration transaction

📖 See details: [Account Registration](/taolend-docs/account/registration.md)

### Step 3: Deposit TAO

1. **Open Deposit**
   * Go to **Profile**
   * Click **Deposit**
   * Select **Free Tao** or **0 - Root**
2. **Enter Amount**
   * Input the Amount you plan to lend
   * Or click **Max**
3. **Confirm**
   * Review details
   * Confirm the transaction in your wallet
   * Wait for confirmation (about 10–30 seconds)

📖 See details: [Deposit and Withdraw](/taolend-docs/account/deposit-withdraw.md)

***

## Create Offer

![Create Offer Interface](/files/5Ugg5ZZW8LOWx9wS4IlU)

### Step 1: Open Lend Page

1. Click **Lend** in the navigation bar
2. Review existing Offers in the Market
3. Click **+ New Offer**

### Step 2: Configure Offer Parameters

#### 2.1 Select Subnet

Choose the Subnet of the ALPHA collateral you are willing to accept.

**Common Subnets**:

* Subnet 116
* Subnet 120

**Tips**:

* Choose Subnets you understand
* ALPHA prices and risks vary by Subnet

#### 2.2 Set Amount

Set the maximum TAO Amount you are willing to lend.

**Rules**:

* Minimum Amount: 1 TAO
* You may exceed your balance, only the available balance applies
* You may lend less than your total Balance

#### 2.3 Set Daily APR

Define the Daily APR for the loan.

> 💡 **Note**: Interest is calculated per block (1 day = 7,200 blocks). Daily APR is an equivalent display value.

**Range**: 0.01% – 1%

#### 2.4 Set Maximum Acceptable Price

Set the Maximum Acceptable Price for ALPHA.

**Why It Matters**:

* Prevents overvaluation of collateral
* ALPHA prices are market-driven and volatile
* If it exceeds 90% of the current price, the contract will automatically block

**Best Practices**:

* Reference current and historical ALPHA prices
* Lower caps increase safety but reduce attractiveness
* Balance risk and competitiveness

#### 2.5 Set Expire in

Choose how long the Offer remains valid.

**Options**:

* 1 day
* 3 days
* 7 days
* 30 days

Expired Offers are automatically invalid and can be cancelled anytime before expiration.

### Step 3: List Offer

1. Review all parameters carefully
2. Click **List**
3. Sign the message in your wallet (off-chain)
4. The Offer becomes active immediately and visible in the Market

***

## Manage Offers

<div align="center"><img src="/files/hdPF4gEH7tWQwGLVKqCO" alt="Lend Offers"></div>

### View Offers

On the **Lend** page, you can see:

* Active Offers
* Remaining Amount
* Daily APR
* Expire in

### Cancel Offer

1. Locate the Offer in **Lend**
2. Click **Cancel**
3. Confirm the on-chain transaction

**Notes**:

* Accepted portions cannot be cancelled
* Only unused Amount can be withdrawn

### Batch Cancel

* Select multiple Offers
* Click **Cancel All Subnets Offers**
* Complete in a single transaction

### Offer Available Balance

#### When Loan is Repaid

* ✅ When a borrower repays the loan (before collection or after), the **available balance** of your Offer **will be restored**
* The used amount returns to your Offer pool and becomes available for other borrowers

#### When Loan is Defaulted

* ⚠️ When a loan enters **Collection** and remains unpaid (even after collection grace period), the **available balance of your Offer will NOT be restored**
* The locked amount remains unavailable until the collateral is claimed

***

## Manage Loans

<div align="center"><img src="/files/vYoEh8WtUPwr5Gho9N6N" alt="Lend Active"></div>

### Active Loans

When a borrower Accepts Loan:

1. Go to **Lend → Active**
2. View details:
   * ID
   * Borrow Amount
   * Daily APR
   * Start time
   * Accrued interest
   * Collateral Amount and Subnet
   * Status (Active / Collection / Finished)

### Collection

#### When You Can Collect

* **0–3 days**: Minimum duration, collection not allowed
* **After 3 days**: You may initiate collection
* **Collection period**: 3 days for borrower repayment
* **Afterward**: Collateral can be claimed

#### How to Collect

1. Select an eligible loan
2. Click **Collect**
3. Confirm the transaction on-chain

#### Claim Collateral

If the borrower fails to repay:

1. Click **Claim**
2. Confirm the transaction
3. ALPHA collateral is transferred to your account

***

## Withdraw Earnings

### Check Balance

In **Profile**, view:

* Balance
* Lent Amount
* Withdrawable Amount

### Withdraw

1. Click **Withdraw**
2. Select **0 - Root**
3. Enter Amount or click **Max**
4. Confirm the transaction

📖 See details: [Deposit and Withdraw](/taolend-docs/account/deposit-withdraw.md)