Qoda uses a Marketplace model for lending/borrowing. What is a Marketplace?
In short, the Qoda Marketplace is like a simplified orderbook exchange for loans, arranged by interest rate (APR) instead of price. Qoda’s Fixed Rate Loan Marketplace allows users to place on-chain orders that we call Quotes to either lend or borrow a particular token for a user-specified size, APR, and maturity date.
Users can browse the list of existing Quotes to pick the terms that best suit their needs. For users lending on Qoda, no collateral deposit is required.
When you launch the Qoda app, the first page you’ll be taken to is the Markets page, which lists all the Markets that are currently available on the platform for borrowing/lending. In this particular example, there are four markets: USDCFEB23, USDCMAR23, USDTFEB23, USDTMAR23, with the token name signifying what currency the loan will be denominated in, and the date signifying when the loan will mature, which by convention is at 4PM UTC on the last day of the month. You can learn more about Markets from the Glossary Of Terms.
Click on the name of the market in which you want to lend. If you want to lend immediately, you can use the Quick Lend function. You will see the amount of tokens in your wallet available for lending.
Enter your desired amount to lend. You may either specify:
- Notional Amount, which is the amount that gets borrowed or lent today. If you are lending, this is the amount you will be lending immediately upon accepting the Quote.
- Repayment Amount, which is the amount that will be repaid at Maturity. If you are lending, this is the full principal plus interest amount you will receive upon the Maturity time.
The interest rate will be calculated automatically based on the orderbook’s existing Quotes. It is calculated based on the weighted average of the Quotes ( the sum of (APR * amount) / total amount ).
Example: If the orderbook has two quotes: (1%, 1,000 notional) and (10%, 10,000 notional) the estimate APR for a total 11,000 size would be ~9.18%.
Once you've confirmed and executed the transaction, you will have lent your tokens and you will be minted qTokens as a receipt.
If there are currently no open Quotes for this Market, then the quick lend form will not be available. In this case, you can create your own Quote and wait until other users fill it. If you don’t find any current Quotes that suit you, you may create your own by clicking on the +Publish Lend Quote Button.
Create a Quote — you may specify your desired interest rate, notional, or repayment amount.
New Quote Page
Once you’ve filled in all the terms, hit “Publish Quote”. Once you've executed the transaction, your Quote is now live! Quotes that belong to you are marked with “Me” text in blue in the main Marketplace Page. You can also cancel your Quotes anytime, even before they are filled or expire (though you will have to pay some small gas fees to do so).
After you have published the Quote, may also inspect it anytime in your Portfolio page.