🔥P2P Token Lending

🔥 How does Texture P2P lending work?

Texture P2P Lending protocol on Solana enables users to borrow and lend tokens directly between each other, using tokens as collateral for a fixed period of 7 days.

Borrowers lock their collateral tokens to borrow other tokens and have 7 days to repay the loan with interest, or they risk losing the collateral to the lender.

Lenders place lending offers specifying the offer size and the offer price (LTV). All offers have the same APY set by the protocol per pair. Offers with the highest LTV are given priority and are fulfilled first.

The protocol doesn’t rely on any oracles in its design, meaning that lenders decide on how much risk (LTV) they are willing to take and are responsible for monitoring and adjusting their positions.

Please note that the protocol is currently in public beta, use it with caution.

🧠 Why should I use Texture?

Compared to traditional pooled DeFi lending protocols Texture offers lenders unique high-risk and high-return (APR > 100%) lending experience.

Borrowers get high-LTV (> 70% - 90%) short-term loans with no liquidations to hedge a particular token’s price exposure or get degen leverage with sweet LTV.

No borrow/lend limits.

No need to worry about pool utilization.

No liquidations.

What you see is what you get. 💪

How do I borrow on Texture?

Specify the amount of the collateral token you wish to borrow against. View the maximum loan size you can borrow, the corresponding Loan-to-Value (LTV) ratio, and the interest amount. Click borrow and take the best (i.e. highest LTV) offers currently available.

You have to repay the borrowed amount and interest within 7 days otherwise the lender can claim the collateral tokens you locked. Interest is incurred only if you return the loan.

In situations where your collateral token’s price significantly decreases, it may be rational not to return the loan. Texture's P2P loans can serve as a powerful tool to hedge your token holdings.

Check out the Borrow Tutorial

Check out our Borrow Tutorial

How do I lend on Texture?

1. Set your offer price. Specify how many USDC or SOL (depending on the pair) you are lending per 1 collateral token (offer price). This is a crucial risk management metric, aligning with your risk appetite. Your offer price divided by the collateral token price gives you the Loan-to-Value (LTV) ratio, visible in the UI. Borrowers take offers with the highest LTV first, so offers with higher LTV are more competitive and are taken faster. But bear in mind that higher LTV increases the chances that the loan may not be repaid when collateral token prices drop below your offer price.

2. Set your offer size. Select the amount of USDC or SOL (depending on the pair) you want to lend at the specified offer price. Deposit the corresponding amount of USDC or SOL to place the offer. You can withdraw your funds until the offer is taken by borrowers. If the offer is taken partially, you can withdraw the remaining amount.

3. Monitor your offers. Regularly check your open offers, as collateral token price fluctuations impact your effective LTVs and risk exposure. Adjust your offers as needed; for instance, relist risky offers as collateral token price approaches your offer price or increase your offer price during market upswings to stay competitive.

4. Check on your loans. If a loan isn't repaid within 7 days, you can claim the collateral. Navigate to the "My Offers" page, select "Active," and use the claim button to retrieve the collateral tokens to your wallet.

Check out our Lend Tutorial

Can my collateral be liquidated if SOL price goes down?

No, as a borrower, you have control over repaying the loan, and collateral token price fluctuations during the loan duration do not impact your collateral.

However, if you don’t repay the loan within the 7-day period, the lender can claim the collateral and receive the collateral tokens. You will still have an opportunity to repay after the loan expiration, but the lender can execute the collateral claim at any time.

How is the interest rate (APY) determined?

The APY is established by the protocol and may be adjusted for new placed offers (those not yet taken) periodically. These adjustments consider tokens price dynamics and prevailing market conditions.

Why do I see so many active loans? I only borrowed once / placed one offer

That’s because Texture loans are P2P loans. Every loan has an individual borrower / lender on the other side.

When you borrow it’s a likely case that you borrow from multiple lenders, and your loan may be shown as different loans on “My Loans” page. But don’t worry, combined amounts and LTV are the same as were shown on the Borrow screen at the time of taking the loan.

When you lend, especially with larger offers, multiple borrowers may take your offer. A single offer can result in several active loans with varying repayment dates (depending on when the offers were taken). Despite this, all these loans share the same LTV.

We are working on UX improvements to enhance the cleanliness and convenience of these sections.

💰 Does Texture charge any fees?

Lenders don’t pay any fees on Texture.

Borrowers pay protocol fee on their collateral when they borrow.

Protocol fee for (collateral-principle) SOL-USDC and JLP-USDC pairs is 0.14% on locked collateral, fee for all the LST-SOL pairs is 0.07% and for all other pairs it is 0.21%.

📊 What’s the source of the price in Texture UI?

The price in the Texture UI is sourced from Pyth, serving as an indication. Importantly, the Texture contract operates independently of oracles and price feeds. As a user, whether setting offer prices as a lender or making decisions as a borrower, you have the flexibility to use any price source.

In fact, you can bring your own oracle.

Points?

You get them every time you borrow or lend on Texture, we keep track of your total balance to make sure you are rewarded in the upcoming Season 2 of PXLS 👀

👷 Is the protocol externally audited?

The protocol is currently in the beta stage, so it's advised to use it with caution. We are actively engaging with external auditors to provide independent audit reports.