# Lend & Borrow (Beta)

<figure><img src="/files/972x1T8esOj9X7wJPrSq" alt=""><figcaption></figcaption></figure>

This lending feature is a fork of the trusted and audited [Aave Protocol](https://aave.com/), adapted specifically for FUSE. The only change to the original Aave smart contracts lies in the oracle system: instead of Chainlink, Voltage uses Supra Oracles to fetch asset prices.

\
With the foundational security of Aave and the speed and flexibility of Supra, Voltage offers a familiar, battle-tested lending experience, now localized to the FUSE ecosystem.

***

## :warning:Beta Disclaimer

{% hint style="warning" %}
This is a Beta release. The lending protocol is deployed with real assets, but is currently running under limited liquidity and caps on user activity. Bugs may occur.

Please use responsibly. All users will be able to access incentives for participating in this Beta phase. Details about the incentive program will be released soon.
{% endhint %}

***

## :gear: Core Mechanics

Voltage Lending enables the following:

| **Interaction** | **Description**                                          |
| --------------- | -------------------------------------------------------- |
| Supply          | Deposit assets to earn yield                             |
| Borrow          | Use supplied assets as collateral to borrow other assets |
| Repay           | Pay back borrowed funds anytime                          |
| Withdraw        | Remove supplied assets (if conditions allow)             |
| Swap            | Exchange tokens via integrated swap UI                   |
| Stake           | Stake assets to earn additional yield or gain benefits   |

All user interactions directly affect the Health Factor, a key ratio that determines liquidation risk. Maintaining a Health Factor above 1.0 ensures safety from liquidation.

***

## Beta Parameters

To ensure controlled testing, the following caps and values apply during the Beta:

| **Parameter**                 | **Value**                    |
| ----------------------------- | ---------------------------- |
| Total Supply Cap (ETH & USDC) | $50 000                      |
| Total Borrow Cap per User     | $35700                       |
| Target Health Factor          | \~1.4                        |
| Initial Protocol Liquidity    | \~$2,000                     |
| Network                       | FUSE only                    |
| Incentives                    | Yes, for early testers (TBA) |

These values may change over time as feedback is collected and risks are evaluated.

***

## Protocol Design Information

1. Voltage Lending is live on the FUSE Network. It’s non-custodial and permissionless. Users stay in control of their funds at all times. Smart contracts handle everything — transparently and without intermediaries.
2. Prices are powered by Supra Oracles, not Chainlink. These oracles feed real-time, secure price data. They’re used to calculate collateral values, borrowing limits, and trigger liquidations.
3. The system follows Aave’s proven risk model. It includes loan-to-value (LTV) caps, liquidation thresholds, dynamic interest rates, and liquidator bonuses.
4. Early users will be rewarded in FUSE tokens. Keep in mind — this is a test phase. There may be bugs. Use with caution.

⚠️ Although based on Aave, the protocol is still in testing. Users should only interact with funds they are comfortable risking during this early stage.<br>

{% content-ref url="/spaces/wttAR2Fr2U1I5o5f6hJf/pages/zJVTCpW9LqpFbVnqUG41" %}
[Lending & Borrowing tutorial (Beta)](/voltage/the-platform/lend-and-borrow-beta/lending-and-borrowing-tutorial-beta.md)
{% endcontent-ref %}

{% content-ref url="/spaces/wttAR2Fr2U1I5o5f6hJf/pages/07lqVfgIPffhxImbkZN6" %}
[FAQ](/voltage/the-platform/lend-and-borrow-beta/faq.md)
{% endcontent-ref %}

{% content-ref url="/spaces/wttAR2Fr2U1I5o5f6hJf/pages/76MXJ5XpTA5x70w50kR0" %}
[Liquidations](/voltage/the-platform/lend-and-borrow-beta/liquidations.md)
{% endcontent-ref %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.voltage.finance/voltage/the-platform/lend-and-borrow-beta.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.