Earn
Lavarage is a two-sided protocol: traders borrow capital to open leveraged positions, and lenders provide that capital and earn interest. The Earn side is where you participate as a lender.
How Lending Works on Lavarage
Lavarage uses a peer-to-vault model. Each lending vault is independent and isolated from every other vault — this is not a single shared pool like Drift or Aave where all lenders share one risk bucket.
Every vault is operated by an individual lender who controls their own risk parameters: which tokens to lend, what interest rate to charge, what LTV limits to set, and how much capital to deploy. If one vault has a bad liquidation, it does not affect any other vault on the platform.
This architecture means:
- Lenders have full control over their risk exposure
- Traders benefit from competition between vaults offering different rates and terms
- Risk is compartmentalized — no systemic contagion between vaults
Two Ways to Earn
Active Lending — Operate Your Own Vault
Create and manage your own lending vault. You set the loan offers, control the terms, and earn interest directly from traders who borrow from you.
Active lenders will have access to a comprehensive toolkit:
- Lending Vaults — create vaults for any token (SOL, USDC, etc.) with your own parameters
- Loan Offers — set interest rates, LTV limits, and exposure caps per collateral token
- Automation Rules — configure automated responses to market conditions
- LP Portal — a dedicated dashboard for monitoring vault performance, exposure, and liquidation history
- MCP Integration — programmatic vault management via Model Context Protocol for AI-powered lending strategies
Active lending tools are currently available via the LP Portal and API, with significant upgrades coming in V2.
Passive Staking — Stake into Existing Vaults
Don't want to manage a vault yourself? Stake your tokens into vaults operated by other lenders and earn yield passively. The vault operator handles all the risk management — you just provide capital and collect returns.
Lavarage offers two vault types for stakers:
| Vault Type | Risk to Stakers | Yield Profile |
|---|---|---|
| Insulated | None — liquidation losses are absorbed by the vault operator | Lower, more predictable |
| Exposed | Yes — stakers participate in liquidation gains and losses | Higher potential, more variable |
The V1 staking page will be completely upgraded and launched as a comprehensive vault marketplace in V2 — browse, compare, and stake into vaults across the platform. Coming soon.
Yield Source
Your yield comes from real economic activity: traders paying interest on margin loans. It is not subsidized by token emissions. As long as traders are borrowing, lenders are earning.
Next: Learn about the Referral Program and earn commissions by inviting traders.
Updated 4 days ago