Lending

Lenders on DeFi Pool Share are LPs of Uniswap V3 Pools that are lending their position in the pool to interested borrowers for a specific period of time in exchange of a lending fee

Step 1: Set up a compatible wallet

The first step is to set up a wallet that supports Ethereum and ERC-20 tokens. We recommend using wallets such as MetaMask or MyEtherWallet, but you can also use any other Ethereum-compatible wallet.

Step 2: Add liquidity on Uniswap V3

Load your wallet with the tokens of a pair you want to provide liquidity to (for example. ETH & DAI). Here’s how you can add liquidity to an existing or a new pair on Uniswap V3 easily: https://support.uniswap.org/hc/en-us/articles/7423194619661-How-to-provide-liquidity-on-Uniswap-V3

Once you’ve added liquidity to Uniswap V3, based on the pool and your parameters selected on the liquidity providing interface a unique NFT will be minted representing & backing your position in that specific pool. As the owner of this NFT, you can modify or redeem the position.

Step 3: Connect your wallet on DeFi Pool Share

Once you have set up your wallet, you can connect it to DeFi Pool Share by visiting our app and connecting your wallet through the "Connect Wallet" button. This will allow you to view your Uniswap V3 Position NFTs and available pools.

Step 4: Set up lending terms & lock your Uniswap V3 position NFT

Most of the users have step 1,2 & 3 already in place. For providing liquidity to a Uniswap V3 Pool, you receive an LP NFT. Now that you have a Uniswap V3 LP NFT, you can set up lending terms like lending fees & duration of the loan and then lock it into our lending smart-contract for the loan duration. Borrowers will then start bidding for borrowing your position.

Step 5: Accept a bid from a borrower

Once a borrower has placed a bid on your Uniswap Position NFT, you can review the bid and decide whether to accept or reject it. If you accept the bid, the borrower will need to pay the lending fee and gain access to the claim fee function of your Uniswap V3 position NFT, and you’ll receive upfront the agreed-upon lending fees. In case you don’t accept any bid, you’re free to withdraw your locked NFT from the smart-contract irrespective of loan duration since the loan hasn’t actually begun on-chain.

Step 6: Withdraw Uniswap V3 Position NFT

At the end of the loan duration, the lender will get an option to withdraw their Uniswap V3 Position NFT.