Overview
The Irion Pay LendingPool is the foundation of the protocol's liquidity. It operates as a non-custodial vault where depositors provide stablecoins (multi-asset support starting with USDC) to enable BNPL credit lines for shoppers.
How it Works
- Depositing: Users deposit USDC into the
LendingPoolcontract. - LPC Issuance: For every deposit, the protocol mints Irion LP tokens (LPC) representing the user's share of the pool.
- Loan Utilization: When a shopper uses Irion BNPL at checkout, liquidity is withdrawn from the pool to pay the merchant.
- Yield Generation: Borrowers pay interest (APR) on their loans. This interest automatically accrues to the value of the pool, increasing the redemption value of LPC tokens over time.
Key Metrics
- Total Value Locked (TVL): The total amount of USDC currently held in the pool.
- Utilization Rate: The percentage of the pool currently out as loans. Interest rates scale dynamically with utilization to ensure liquidity availability.
- LP APR: The annualized return for liquidity providers, driven by loan interest and protocol fees.
Asset Details (Testnet)
| Property | Value |
|---|---|
| Pool Asset ID | 758823248 (Mock USDC) |
| LP Token ID | 758823277 (LPC) |
| Target Utilization | 80% |
Providing Liquidity
Lenders can manage their positions via the Lending Dashboard in the Irion Core app.
Risks & Mitigations
- Default Risk: Borrowers are heavily incentivized to repay to maintain their
CreditScore. In case of total default, the protocol's reserve factor helps buffer losses for LPs. - Liquidity Risk: High utilization may temporarily restrict withdrawals. The interest rate curve is designed to curb borrowing and attract new capital when utilization exceeds 90%.
[!TIP] You can earn boosted yield by maintaining a high Governance Score (coming soon) or providing liquidity during protocol bootstrap phases.