> For the complete documentation index, see [llms.txt](https://docs.cian.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.cian.app/bondify/for-users-quick-start/user-strategies/lender.md).
# Lender
### Standing Lending Facility (SLF)
#### What is SLF
SLF is Bondify's lending pool and the stable layer of the protocol. You deposit USDC; that USDC becomes the capital Loopers borrow to build leveraged positions and to issue Yield Tokens. You earn the borrowing fees those strategies pay.
Unlike a general-purpose lending market, SLF is built specifically for looping — entering and exiting a leveraged position takes one pass at each end, not a chain of supply-borrow loops.
Every deposit sits senior in the waterfall. Looper capital absorbs losses before SLF: the YT upfront payment first, then looper equity, then the treasury backstop.
#### **Why SLF exists: looping shouldn't take loops**
On a general lending market, the lending primitive is "supply collateral, borrow up to LTV × collateral." A leveraged position has to be built by looping that primitive itself:
* **Entry, loop by loop.** Each loop is supply, borrow, stake, supply again. The borrow ratio decays by LTV every round, so the total staked converges to `supply + borrow × leverage`. Reaching the target leverage takes many rounds, each costing slippage on the stake and gas on the transaction.
* **Exit, loop by loop and worse.** Without spare USDC, you can't simply repay and withdraw. You withdraw a slice of collateral (raising LTV), unstake that slice through the underlying, wait one full unstake cycle, repay debt with the proceeds, and only then can you free the next slice. Each slice waits the full cycle.
SLF runs the same actions in one pass:
* **Entry.** You supply collateral and pick your leverage. SLF borrows the full leveraged amount in a single call, and the protocol stakes the entire balance into the underlying. One transaction reaches the same `supply + borrow × leverage` total.
* **Exit.** You send one instruction to SLF. The protocol withdraws the full position, initiates unstake once, waits one underlying cycle, then repays SLF in full and returns the remainder to you. One cycle, not many.
#### Two markets
* **General Lending Market (1vN).** Your USDC funds every supported collateral from one shared pool. Diversified exposure, blended yield.
* **Senior Lending Market (1v1).** Your USDC funds a single collateral in an isolated pool. Targeted exposure to one asset's risk and rate.
#### How you earn
SLF collects fees from both strategies it funds:
* **Looping fees** - variable borrowing fees from leveraged positions.
* **YT upfront cost** - a fixed payment YT buyers pay at purchase.
YT is issued through looping at high leverage (up to 95–98% LTV), so it carries a higher borrow rate than a plain lending pool. That lifts SLF's blended rate, and the yield paid to lenders. Supply APY is typically 4–10%, driven by utilization and the looping-vs-YT mix, not by any single borrower's leverage.
#### Withdrawals
No lockup. SLF targets \~80% utilization and holds the rest as reserve, so you can withdraw whenever liquidity is available. Under extreme utilization, withdrawals may be limited until capital frees up, including from maturing YT positions.
#### Example: an sUSDe pool
* Max LTV 80%, up to 4× leverage for looping
* Points multiplier on sUSDe collateral: 20×
* SLF is the last-resort YT seller: when the FIFO queue has no looper sellers, SLF issues YT from its own capital
* The SLF daily interest rate is the reference rate in the YT pricing formula
#### Risks
* **Asset risk.** Returns depend on the underlying RWA and interest-bearing assets. Mitigated by diversification and asset selection.
* **Liquidity risk.** Withdrawal capacity tightens at high utilization. Mitigated by reserve targets and recallable YT capital.
* **Smart contract risk.** As with any protocol. Mitigated by audits and staged rollout.
The loss-absorption order:
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