Lending Offers are proposed loan offers that can be automatically matched with prospective borrowers.
Create a loan proposal with your desired parameters and transmit to the stars. A user looking for a loan that matches your parameters can have their borrow position filled by you automatically. Your loan intent will execute when matched with a borrower.
If matched, your loan(s) will execute automatically. Once live for 24 hours, you can hold a Recall auction.
Step 1: Transmitting the Lending Intent
Define Key Parameters: The borrower must sign an EIP-712 message off-chain, by transmitting an intent through the Astaria application. This signed message is gas-free, although users will have to approve the collateral token before proceeding.
Important Note: When turned on, the Repeat fill toggle will allow Astaria to continuously fill loans at your desired parameters until all of the lent asset has been depleted from your wallet. Disable it to only allow one loan to fill.
TIP: The higher your LTV and the lower your interest rate, the more likely you are to have your intent filled by a lender.
Step 2: Wait for a Borrower
Your offer then enters the matching service where it will be matched with a borrower should your terms fit the needs of the borrower.
You should monitor your loan to make sure the LTV is within your risk tolerances depending on asset price fluctuation.
You do not need to have access to your wallet to fill alone. The approval and signed intent message will allow funds to automatically be withdrawn safely from your wallet.
Step 3: Monitoring the Loan
If at any point a you would like to exit the loan, you must Recall. Note: you can not hold a recall auction until after a 24 hour honeymoon period.
Lenders should monitor the health of the loan continuously to make sure that the value of the collateral does not fall below the value of the borrowed asset.
As a lender, sending a loan to Recall is the only way to exit a position.