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MIP-5 — Earn

info

Live on testnet, and paying zero. MIP-5 assigns the previously-reserved slot to Earn — a lending pool where depositors supply assets and earn yield from the interest paid by spot-margin borrowers. Deposit and redeem work today. The yield does not: a pool auto-creates at a borrow rate of zero, and no spot pair is calibrated for borrowing, so both sides of the interest flow wait on governance.

What Earn is​

Earn is the supply side of MetaFlux's spot lending market. A depositor lends an asset (e.g. USDC) into a per-asset pool and receives shares priced off the pool's net asset value (NAV) — the same NAV/share accounting as the Metaliquidity vault. Spot-margin traders borrow from the pool and pay interest; that interest accrues into the pool's NAV, so every share appreciates. A depositor's yield is:

your_yield = shares × (share_price_now − share_price_at_deposit)

The borrow rate is a flat annual rate that governance sets per quote asset. The utilisation curve below is the shape this lane moves to later; it is not what runs today. Supply APY tracks the rate in force:

supply_APY ≈ borrow_APR × utilisation × (1 − reserve_factor)

Two sides of one market​

Earn (supply) and spot margin (demand) are the two sides of a single lending market: the interest borrowers pay is the yield lenders earn.

  • Reuses MIP-2 NAV/share accounting for deposits and withdrawals (deposit mints shares at the current share price; withdraw redeems at NAV).
  • Adds what a vault does not have: a utilisation→APR interest-rate curve and continuous (per-block) interest accrual.

Status​

Live on testnet, and paying zero. Deposit and redeem run today. Two two-thirds-stake governance votes stand between a deposit and any yield: one sets a non-zero borrow rate on the quote asset, and one calibrates a spot pair for borrowing. Until both land, share price stays at its deposit value and a redemption returns the principal. The utilisation curve above is the shape this lane moves to later, not what runs today.

See Earn for the live action surface and the risk model.

Governing reference​

  • See the MIP registry for the authoritative index and status of every MIP.