> ## Documentation Index
> Fetch the complete documentation index at: https://lending.satsterminal.com/llms.txt
> Use this file to discover all available pages before exploring further.

# For capital providers

> The LP case, risk shape, yield surface, withdrawal mechanics, mainnet path.

# Your BTC, working, without the risks you've learned to refuse.

This page is written for the person sitting on Bitcoin who has spent years saying *no* to on-chain lending, because every venue that asked for the deposit also asked for something they weren't willing to give up. Native custody. Clean risk. The ability to leave when they wanted to.

The protocol you'll read about below is built around the constraints you actually apply to capital.

<Info>
  We do not publish target rates and we do not project TVL. The protocol is on testnet and mainnet is approaching. The honest pitch is the *shape* of the exposure, not a number we cannot defend.
</Info>

***

## 1. What supplying actually does

You deposit the **loan asset** of a specific, named market (e.g., USDC into a BTC-collateral market). Your claim on that market's supply side is tracked as **supply shares in the market contract** — an internal accounting entry, not an ERC-20 wrapper sent to your wallet. There is no aToken, no receipt token, nothing to lose, transfer, or unwrap. As borrowers in that market pay interest, the value of your shares grows. When you want to leave, you redeem directly against the contract for the underlying, proportional to your position, governed by utilization, never gated by a multisig.

That is the entire loop. There is no staking contract in the middle, no governance token wrapping it, no team-controlled queue.

<Note>
  Supplying the loan asset is the yield-earning side. Posting BTC (or any other asset) as **collateral** is a borrower action — collateral underwrites your own borrow, it does not earn supply interest.
</Note>

***

## 2. Where the yield comes from

Lender yield is **borrower interest, paid in real time, against real demand.** It is not an emissions subsidy. It is not a treasury grant. It is not a token incentive dressed up as a rate.

A market's utilization (the fraction of supplied capital currently borrowed) drives the rate via a transparent on-chain curve. Higher utilization, higher rate. The curve is set per market, visible in the contract, and not subject to retroactive change.

You are paid because someone, somewhere, has a reason to borrow against Bitcoin at that rate. If no one does, you earn nothing. That is the right kind of yield to underwrite.

***

## 3. Why isolated markets matter to you

This is the single most important property of the protocol from an LP standpoint.

In a pooled lending protocol, your deposit underwrites every asset the protocol has ever listed. A bad oracle on a token you never supplied can drain your position. You inherit risks you never chose.

On SatsTerminal Lending, **you supply into one market at a time.** That market has a defined collateral asset, a defined oracle, a defined risk curve. Your exposure is exactly that, and nothing else.

<CardGroup cols={2}>
  <Card title="One market, one risk surface" icon="grid-2">
    A failure in a neighboring market cannot reach your position. The contracts make this structural, not aspirational.
  </Card>

  <Card title="You pick your underwriting" icon="vault">
    Conservative collateral, conservative oracle, conservative LTV, or further out the risk curve, by choice, not by accident.
  </Card>
</CardGroup>

***

## 4. How withdrawal works

Withdrawal is determined by **market utilization**, not by anyone's decision.

* If the market has free liquidity, your withdrawal lands immediately.
* If utilization is at the cap, you wait until it drops, either because borrowers repay or because rates rise enough to attract new supply or shed demand.

There is no human in this loop. There is no governance lever. There is no multisig that can extend a withdrawal queue under stress.

This is the same withdrawal model that has survived the major DeFi stress events of the last several years. It works because it is mechanical.

***

## 5. What you are not exposed to

Naming what's *absent* is often more useful than describing what's present.

<CardGroup cols={2}>
  <Card title="No wrapped-asset risk" icon="link-slash">
    You are not depositing an IOU for BTC issued by a custodian or federation. You are interacting with BTC natively.
  </Card>

  <Card title="No bridge risk" icon="link-slash">
    The protocol does not custody assets in a bridge. There is no honeypot contract holding redemption rights.
  </Card>

  <Card title="No admin-key risk" icon="user-slash">
    No team-controlled keys can pause withdrawals, change parameters, or move user funds. The protocol cannot be edited around you.
  </Card>

  <Card title="No governance-token politics" icon="building-columns">
    Your position is not at the mercy of a DAO vote, a token-holder lobby, or a delegation race. The rules don't change.
  </Card>

  <Card title="No shared-pool contagion" icon="shield">
    A loss in another market cannot reach your supply. The contracts make this isolation real, not narrative.
  </Card>

  <Card title="No undisclosed code" icon="code">
    Every line of the lending core is open source and source-verified on-chain. What you see is what runs.
  </Card>

  <Card title="No position wrappers" icon="ban">
    Your supply position is internal contract state, not a token sitting in your wallet. Nothing to misplace, nothing to depeg, nothing that can trade away from the underlying claim.
  </Card>
</CardGroup>

***

## 6. The diligence pack

Everything a serious allocator needs to underwrite the protocol is documented here.

<CardGroup cols={2}>
  <Card title="Thesis" icon="book" href="/thesis">
    Why this market exists and why it's open now.
  </Card>

  <Card title="Architecture" icon="microscope" href="/architecture">
    How the protocol is built and what each design choice rules out.
  </Card>

  <Card title="Risk framework" icon="shield" href="/risk-framework">
    Each class of residual risk (oracle, liquidation, parameter, smart contract) and how it is bounded.
  </Card>

  <Card title="Security" icon="shield-check" href="/security">
    Trust model, audit path, and disclosure policy.
  </Card>

  <Card title="Differentiation" icon="diamond" href="/differentiation">
    How the protocol compares to the venues you've already evaluated.
  </Card>

  <Card title="Roadmap" icon="bolt" href="/roadmap">
    What ships between today and mainnet, in order, with what the LP sees at each stage.
  </Card>
</CardGroup>

***

## 7. How to participate

<Steps>
  <Step title="Today: testnet" titleSize="h3">
    The protocol is live on testnet. Sophisticated allocators can exercise the full lifecycle (supply, borrow, repay, liquidate) against test capital and review the contracts directly.
  </Step>

  <Step title="Pre-mainnet: direct engagement" titleSize="h3">
    We work directly with prospective capital providers on risk-parameter review, oracle selection for launch markets, and onboarding logistics. This is the most efficient point to engage if you intend to allocate at mainnet.
  </Step>

  <Step title="Mainnet: initial markets" titleSize="h3">
    Conservative initial markets, independent audit complete, public bug bounty live. The protocol opens to capital with the smallest possible risk surface.
  </Step>

  <Step title="Post-launch: scale" titleSize="h3">
    Permissionless market creation. Vault layer for managed exposure. Integration across the broader SatsTerminal ecosystem.
  </Step>
</Steps>

<Card title="Talk to the team" icon="envelope" href="mailto:stan@satsterminal.com">
  [stan@satsterminal.com](mailto:stan@satsterminal.com), diligence pack, intros, and pre-mainnet allocation conversations.
</Card>