FAQ

Lending

How does lending work?

VibrantX enables you to supply assets to earn yield, and to borrow assets (coming soon) to increase your leverage, or to engage in various other DeFi activities within the Aptos ecosystem. VibrantX lending is built to give both lenders and borrowers the comprehensive view of all available opportunities from highly trusted and thoroughly audited protocols.

What are the risks for lenders?

Lenders are subjected to Borrower Default Risk and Protocol Smart Contract Risk:

Borrower Default Risk

If you deposit an asset, you earn yield when other users borrow your assets. In the mean time, you are now subject to Borrowers Default Risk, which means if borrowers fail to repay their debt, you might lose access to your funds. In practice, the losses from bad debts are spread out between lenders in the protocols.

Smart Contract Risk

All borrowing/ lending activities are facilitated by a set of smart contracts.The smart contracts are audited and open source. VibrantX connects users to lending protocols on Aptos, and users are subject to smart contract risk of the specific protocols they choose.

Is VibrantX audited?

Yes. You can view the protocol audits here.

How does VibrantX protect users from risk?

VibrantX works closely with Aptos Foundation and member protocols to thoroughly assess the strategies before listing them on our platform. We make sure users have access to highly trusted and comprehensively audited protocols. Additionally, users can learn more about Aptos ecosystem and Dapps via our educational content and market updates

Disclaimer: Crypto is a constantly changing industry, so we encourage users to do extra research about Dapps before deploying their capital.

Staking

Where does the yield (APY) come from?

Users lock in their APT to help secure the blockchain and earn staking rewards in return. The staking yield fluctuates based on the total staked amount, i.e. the more APTs are staked, the less the staking yield is. The current annual network reward rate on Aptos is 7%, which is expected to gradually decrease over time as the network matures. The leading staking protocols on Aptos (i.e. Thala and Amnis) are currently able to offer higher rates than natural yield as they employ dual token models which enable them to earn extra yield from providing liquidity across pools on Aptos ecosystem. Visit the protocol docs (https://docs.thala.fi/thala-protocol-design/liquid-staking-thapt & https://stake.amnis.finance/) if you want to learn more about the dual token model.

When can I withdraw?

There are two ways to get your funds back from staking: You can either naturally unstake your funds and wait 30 day cooling period before claiming the funds back to your wallet, or you can swap the staking tokens to native tokens on the liquidity pools immediately, which incurring some trading fees and slippage.

What are the risks?

By delegating your APT to the staking protocols, you trust the protocols to secure the network on your behalf. If the validators perform any malicious activities, they are banned from validating blocks and you lose the opportunity to earn staking rewards. Generally, staking risk is minimal for users compared to other DeFi strategies.