How to Participate in Qubit Finance

Users of Qubit Finance can participate as lenders and borrowers.
Lender: As a liquidity provider, lenders can deposit assets to lend out to others. Liquidity providers will earn interest on their deposited assets.
Borrower: A borrower can deposit assets as collateral and borrow assets in return.


Alice the Liquidity Provider deposits USDT to the Qubit USDT pool. She recieves qUSDT representing her deposited tokens and her share of the total interest the pool earns through the lending period. For providing liquidity, Alice will begin earning QBT as a reward. Additionally, Alice can stake her QBT and lock them away for a fixed period to receive a qScore that will boost her rewards for liquidity provision, provide voting power to participate in governance, and allow her to collect profits and fees distributed to QBT stakers.
When Alice would like to withdraw her underlying assets, she will redeem and burn her qUSDT to receive her deposited USDT along with any interest her assets have earned.
Bob the Borrower deposits BNB as collateral and borrows an amount of USDT limited by the maximum loan-to-value ratio for his asset deposited as collateral.
If the health factor of Bob's loan drops to levels that allow for liquidation, Bob's position will be liquidated and he will lose some of his collateral. Liquidators pay the portion of the debt owed by Bob on his behalf and receive a portion of Bob's collateral as a reward.
If the loan's health factor remains at a non-liquidatable level by the time Bob is ready to return the borrowed USDT, Bob may pay back the USDT to the pool with interest.
Last modified 2mo ago