Escrow Wallet (Lenders)
Before creating lend offers on Offerbook, lenders need to deposit USDC into their escrow wallet. The escrow wallet is a dedicated wallet, separate from your main Solana wallet, used to hold USDC while interacting with Offerbook.- How it works
- Offer visibility
- Costs
- Each lender has one escrow wallet, visible in the interface next to the main wallet balance.
- You can deposit and withdraw USDC at any time using the Deposit / Withdraw buttons.
- USDC stays in the escrow until an offer is accepted. At that point, the USDC is transferred to the borrower. - The escrow allows you to create multiple lend offers using the same USDC balance. Only offers covered by the current escrow balance are visible to other users.
- When accepting a borrow offer (rather than creating a lend offer), USDC is transferred to your escrow automatically if needed.
Borrowers do not use the escrow wallet. When a borrow offer is accepted, collateral is locked directly from the borrower’s wallet.
Creating an Offer
Offerbook uses a step-by-step flow to guide you through offer creation. The process is the same for borrowers and lenders, with labels adapted to each side.Enter the value of the offer
Define the key parameters of the loan:
- Asset to borrow or lend: USDC (fixed)
- Collateral asset and amount: Choose from any verified token on Jupiter
- LTV: Displayed automatically based on the collateral and USDC amounts. Adjusting one updates the other.
Set your rate
Define your APR (if borrowing) or APY (if lending).The loan duration (3 days) and offer expiration (24 hours) are fixed and displayed for reference.
Lenders: Make sure your escrow wallet has sufficient USDC before publishing. Offers without sufficient escrow balance will not be visible to other users.
Offer Parameters in Detail
Collateral (Locked) Asset and Amount
The collateral asset defines what you lock (as a borrower) or accept as collateral (as a lender). Collateral can be any Solana asset (verified tokens on Jupiter). When choosing collateral, consider:- Liquidity of the asset (can the lender sell it easily at maturity?)
- Volatility over the 3-day loan duration
- Comfort holding the asset at maturity (relevant for lenders)
LTV (Loan-to-Value)
The defines how much USDC can be borrowed against the collateral (as a borrower) or the risk exposure accepted (as a lender). The borrowed amount and the LTV represent the same relationship, expressed in two different ways. Changing one automatically updates the other. Example: You lock $1,000 worth of collateral.- If you set the LTV to 50%, you can borrow 500 USDC.
- If instead you set the borrowed amount to 700 USDC, the LTV automatically updates to 70%.
APR / APY
The defines the cost of borrowing (for borrowers). The defines the yield earned (for lenders). APR / APY is:- Fully defined by the user at offer creation
- Market-driven (offers with unrealistic rates may remain unmatched)
- Fixed for the entire duration of the loan
Partial or Full Acceptance
Offers can be accepted partially or in full. Partial acceptance allows a counterparty to take only a portion of the offer.Partial acceptance is not available for offers using NFT collateral, since an NFT cannot be partially transferred.
Evaluating an Offer
When viewing or creating an offer, both borrowers and lenders tend to evaluate the same core elements:| Parameter | What to look at |
|---|---|
| Collateral | Asset quality, liquidity, and volatility |
| USDC amount / LTV | Loan size relative to collateral value |
| Loan duration | 3 days (fixed) |
| APR / APY | Cost or return, relative to all other parameters |
Accepting an Offer
When you accept an offer, the loan starts immediately.- Lenders accepting a borrow offer: USDC is transferred to the escrow automatically if needed, then to the borrower.
- Borrowers accepting a lend offer: collateral is locked directly from the wallet.
There are no automated reminders or margin calls on Offerbook. Repayment timing is entirely your responsibility. Missing maturity means losing your collateral.
Common Mistakes to Avoid
Misunderstanding what happens at maturity
Misunderstanding what happens at maturity
On Offerbook, there are no price-triggered events during the loan. If the loan is not repaid at maturity, the entire collateral is transferred to the lender. This is not a liquidation (there is no sale on the market); it is a direct transfer.If the collateral loses value during the loan and becomes under-collateralized relative to the agreed LTV, the lender may receive an asset worth less than the USDC they lent.This trade-off is inherent to time-based lending and should be understood by both sides.
Forgetting loan maturity (borrowers)
Forgetting loan maturity (borrowers)
Because there are no margin calls during the loan, borrowers may overlook loan maturity.If a loan is not repaid before maturity, the entire collateral is transferred to the lender. Use the calendar reminder at offer acceptance to stay on track.Loan duration and repayment timing should always be factored into liquidity planning.
Assuming early repayment reduces interest
Assuming early repayment reduces interest
Borrowers can repay at any time before maturity, but the full interest for the agreed 3-day duration is always owed. There is no partial interest or fee reduction for early repayment.
Setting unrealistic APR / APY
Setting unrealistic APR / APY
APR / APY is what balances an offer relative to its collateral, LTV, and duration. Offers with rates significantly out of line with current market conditions may remain unmatched.When defining an APR or APY, think about how all parameters work together rather than focusing on a single value.
Using volatile collateral without considering maturity risk
Using volatile collateral without considering maturity risk
Collateral value is not monitored during the loan. Using highly volatile assets as collateral increases uncertainty around the collateral’s value at maturity.Collateral characteristics and loan duration should always be considered together.