MIP-5: Earn
MIP-5 defines Earn, the lending pool on the supply side of spot margin.
MIP-5 gives the reserved slot to Earn. Earn is a lending pool: depositors supply assets and earn yield from the interest that spot-margin borrowers pay. 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. Both sides of the interest flow therefore wait on governance.
Definition
Earn is the supply side of the MetaFlux spot lending market. A depositor lends an asset, for example USDC, into a pool for that asset. The depositor receives shares priced from the pool's net asset value (NAV). This is 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 gains value. 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 for each quote asset. The utilisation curve below is the target shape for later. It does not run 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 one lending market. The interest that borrowers pay is the yield that lenders earn.
- Earn reuses the MIP-2 NAV/share accounting for deposits and withdrawals. A deposit mints shares at the current share price. A withdrawal redeems at NAV.
- Earn adds what a vault does not have: an interest-rate curve from utilisation to APR, and continuous interest accrual per block.
Status
Active on testnet, and paying zero. Deposit and redeem run today. Two governance votes, each at two-thirds stake, stand between a deposit and any yield. One vote sets a non-zero borrow rate on the quote asset. The other calibrates a spot pair for borrowing. Until both land, the share price stays at its deposit value, and a redemption returns the principal. The utilisation curve above is the target shape for later. It does not run today.
Earn describes the actions you can call today and the risk model.
Governing reference
- The MIP registry is the authoritative index and status of every MIP.