FAQ & Risks

FAQ

Where are my Rewards?

Your interest is added to your position every block (5s) but the UI updates the total balance when there is an interaction with the pool, so don’t panic if you don’t see your rewards! The best way to track your rewards is to remember how much you deposited and check our UI to see how many tokens you will get if you withdraw. As your rewards are automatically added to the pool, we display APY figures to demonstrate the compounding that occurs.

Where does the % come from? Which Token?

The interest rate depends on the utilization, the more users are borrowing, the higher yield goes to the lenders. The Rewards are given in the same token (USDC for USDC, SOL for SOL).

Can I withdraw my Assets at any time?

At 95%, we disable the additional borrowing of tokens. However, at 100%, withdrawals is not possible as the pool is fully utilized, waiting for more people to deposit or LYF positions to be closed for the utilization to drop.

Help! I can't withdraw

At 100%, withdrawals is not possible as the pool is fully utilized, waiting for more people to deposit or LYF positions to be closed for the utilization to drop. Please be aware of this especially when depositing altcoins.

Risks

Untimely Liquidation Risk

A risk that lenders may be exposed to is untimely liquidation, where a liquidation takes place but there’s insufficient assets to pay back lenders in full. We liquidate at 85% Loan to Value, leaving us with a 15% buffer which has been more than sufficient so far.

When LYF farmers are liquidated, a 5% liquidation bounty is taken. This goes to build up our insurance fund, which is helps to pay out Lenders in the event of socialized losses due to blackswan liquidation events etc. You can check out our insurance fund here.

Smart Contract Risks

All of Tulip Protocol's code is novel and experimental. Please use discretion when depositing funds. While we have been peer reviewed by the Solana Foundation and other developers, we are not liable for funds lost due to smart contract exploits.