What happens when you lend your stablecoins?
When you stake USDC or USDT in xPortal, your funds are actually being lent to trusted third-party protocols. These protocols allow other users to borrow stablecoins, and in return, you earn rewards — similar to how interest works at a bank.
This is why the reward rate (APY) is shown before you stake — it represents the annual percentage yield you can earn from lending your funds.
This is not the same as staking crypto like EGLD or ETH
Unlike staking, where you help secure a network and receive rewards, lending comes with different mechanics and risks:
Your stablecoins are pooled with other lenders.
Borrowers use these funds and pay interest.
If everything works smoothly, you earn a predictable yield.
What can go wrong?
While these protocols are carefully selected, they are not risk-free. In rare situations, an incident may occur:
Bad debt: if borrowers fail to repay their loans.
Exploit or bug: if the protocol itself is compromised.
Market events: extreme volatility can affect collateral.
When this happens, the protocol may “socialize losses” — meaning the impact is distributed proportionally among all lenders. You could lose part of your lent amount.
Why we still offer lending?
Lending is a core part of DeFi, and for many users it provides a steady, passive return on stablecoins. We only integrate battle-tested protocols with strong security track records.
But it’s important that you understand:
Rewards are not guaranteed.
There’s always some risk.
We never rehypothecate your funds — you’re in full control.
How to manage your risk?
Only lend what you’re comfortable with.
Diversify between assets and protocols.
Stay informed through xPortal notifications and updates.
Final note
Lending is a powerful tool to make your money work for you — but just like any investment, it comes with responsibility. We believe in full transparency so you can make informed decisions.