Lending and Borrowing

Overview

USX can be utilized on Honeypop, a lending and borrowing platform built on Scroll and an extension of Morpho’s vaults. This allows you to lend your USX to earn additional supply yield or use it as collateral for borrowing other assets.

Yield Strategy: Looping

One popular strategy available through Honeypop is "looping" - a method to amplify your yield by recursively lending and borrowing a pair of assets.

How Looping Works

1. Deposit USX as collateral on Honeypop

2. Borrow USDC against your USX collateral (up to your allowed loan-to-value ratio)

3. Convert USDC to USX and deposit this additional USX as collateral

4. Repeat steps 2-3 multiple times (while maintaining a safe collateral ratio - important)

This strategy lets you earn lending yield on more USX than you started with. Make sure you keep an eye on the health ratio to avoid liquidation.

Getting Started

To begin lending or borrowing with USX on Honeypop:

1. Visit Honeypop.app

2. Connect your wallet containing USX

3. Navigate to the "Markets" section and select USX

4. Choose to supply USX (to lend) or use it as collateral for borrowing