Lending
What is Lending on BREAD?
Lending is a feature within the Fusion Wallet on the BREAD platform that allows users to earn passive income by providing capital to a USDC lending pool. This pool is utilized by BREAD to rebalance liquidity across different blockchain networks and optimize trading conditions, making it a vital component of the platform's functionality.
No Impermanent Loss: Since lenders do not manage AMM liquidity positions, they are not exposed to impermanent loss risks.
No Lock-Up Periods: Lenders have the flexibility to withdraw their funds at any time without being subject to lock-up periods, providing liquidity and control over their assets.
No Withdrawal Fees: BREAD does not charge any withdrawal fees for lenders, unless there is an ongoing rebalance (explained below).
Rebalancing and Temporary Withdrawal Restrictions (optional)
During rebalancing events, when BREAD utilizes the lending pool to adjust liquidity across different blockchain networks, there may be temporary restrictions on withdrawals. These restrictions are necessary to ensure the stability of the rebalancing process and maintain optimal trading conditions.
Transparency: BREAD provides clear information about the duration and scope of the rebalancing event.
Resumption: Once the rebalancing process is complete, withdrawals will resume as normal.
Risks
While BREAD employs industry-standard security measures, there is always a risk of vulnerabilities or exploits in smart contracts.
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