Lending and borrowing

Plether integrates with Morpho Blue to offer lending and borrowing functionality. You can supply USDC to earn yield from borrowers, or borrow USDC against your staked collateral from leverage positions.

Overview

Action	What You Need	What You Get
Supply	USDC in wallet	Yield from borrowers
Withdraw	Previously supplied USDC	USDC back in wallet
Borrow	Staked collateral (splDXY-BEAR/BULL)	USDC in wallet
Repay	USDC in wallet	Reduced debt

Supplying USDC

Supplying USDC allows you to earn yield from borrowers who use the Morpho markets.

How to Supply

1. Navigate to the Lending tab on the Dashboard

2. Enter the amount of USDC you want to supply

3. Click Supply USDC (or Approve & Supply if this is your first time)

4. Confirm the transaction(s) in your wallet

What Happens

• Your USDC is deposited into the Morpho market

• You start earning yield immediately based on borrower demand

• The Supplied balance shows your current supply position

• You can withdraw at any time (subject to available liquidity)

APY

The Supply APY shown is the current rate you earn on supplied funds. This rate fluctuates based on:

• Market utilization (how much of the supply is being borrowed)

• Interest rate model parameters

Withdrawing USDC

You can withdraw your supplied USDC at any time.

How to Withdraw

1. Click on the Supplied balance card, or switch to Withdraw mode

2. Enter the amount to withdraw (or click MAX for full balance)

3. Click Withdraw USDC

4. Confirm the transaction in your wallet

Important Notes

• Withdrawals may be limited if market utilization is very high

• You receive the original USDC plus accrued interest

• No approval needed for withdrawals

Borrowing USDC

Borrowing allows you to get USDC liquidity without selling your position. This requires staked collateral.

Requirements

To borrow, you must have:

• An open leverage position (BEAR or BULL)

• Staked collateral (splDXY-BEAR or splDXY-BULL) in the Morpho market

Your leverage position automatically deposits collateral into Morpho when opened. This collateral backs your ability to borrow.

How to Borrow

1. Navigate to the Lending tab

2. Switch to Borrow mode in the bottom section

3. Enter the amount you want to borrow

4. Click Borrow USDC

5. Confirm the transaction in your wallet

Available to Borrow

The Available amount is calculated from:

• Your collateral value

• The Loan-to-Value ratio (LLTV) of the market

• Any existing debt

Available = (Collateral × LLTV) - Current Debt

No Collateral Warning

If you see "No Collateral" or a warning message, you need to open a leverage position first:

1. Go to the Leverage tab

2. Open a BEAR or BULL position

3. Your staked collateral will then be available for borrowing

Repaying Debt

Repay your borrowed USDC to reduce debt and free up collateral.

How to Repay

1. Switch to Repay mode in the Borrow section

2. Enter the amount to repay (or click the Borrowed card for full amount)

3. Click Repay USDC (or Approve & Repay if needed)

4. Confirm the transaction(s) in your wallet

Repayment Tips

• Repaying reduces your debt and increases available borrowing capacity

• You can make partial repayments

• Full repayment clears your debt entirely

Risk Considerations

For Suppliers

• Smart Contract Risk: Funds are held in Morpho smart contracts

• Utilization Risk: High utilization may temporarily limit withdrawals

• Variable Rates: APY can decrease if borrowing demand drops

For Borrowers

• Liquidation Risk: If your collateral value drops too much relative to debt, your position may be liquidated

• Interest Accrual: Borrowed amounts accrue interest continuously

• Health Factor: Monitor your position's health to avoid liquidation

Liquidation

Liquidation occurs when:

Debt Value > Collateral Value × LLTV

To avoid liquidation:

• Monitor your position regularly

• Repay debt if the collateral value drops

• Add more collateral via your leverage position

• Keep a buffer below maximum borrowing

FAQ

Q: Why can't I borrow? A: You need staked collateral from a leverage position. Open a BEAR or BULL leverage position first.

Q: Why is my available to borrow amount zero? A: Either you have no collateral, or you've already borrowed the maximum amount.

Q: Can I withdraw if I have debt? A: Supply withdrawals are independent from borrow debt. However, the collateral backing your debt cannot be withdrawn while you have outstanding debt.

Q: What's the difference between Supplied and my leverage position? A:

• Supplied: USDC you've lent to earn yield

• Leverage position: Your staked collateral (splDXY tokens) that backs borrowing

Q: How is interest calculated? A: Interest accrues continuously based on the market's interest rate model. Rates adjust automatically based on utilization.

Q: Are there fees? A: Morpho markets may have protocol fees built into the interest rate spread. Check the current rates displayed in the UI.