FAQs
General
What is Firyx?
Firyx is a decentralized finance (DeFi) protocol designed for trustless, non-collateral lending. It addresses the high barriers to entry and inefficiencies in the current lending market by allowing users to borrow without posting collateral.
How does Firyx differ from other lending protocols (like Aave, Compound, ...)?
Firyx is trustless non‑collateral; Aave/Compound are over‑collateral; “under‑collateral” attempts are trust‑based.
Over‑collateral (Aave, Compound): You must deposit more than you borrow, limiting access to capital. See Non-Collateral Loan.
“Under/non‑collateral” elsewhere: Some protocols tried it but rely on whitelists, credit scores, or off‑chain agreements (centralized trust). See Non-Collateral Loan.
Firyx: No collateral. Borrowed funds are issued as LP shares under protocol control. A small upfront Protocol Reserve secures interest, is added to liquidity, and earns yield. Formula: R = α · x · L · APR_borrow. See Protocol Reserve. Interest rates are dynamic by utilization, similar to Aave: see Interest Rate Model.
Risks
What is the minimum collateral ratio?
Firyx has no collateral ratio; it uses a small Protocol Reserve instead.
Firyx is non-collateral. Borrowers deposit a Protocol Reserve that’s calculated to be slightly larger than the expected interest. The formula is R = α · x · L · APR_borrow, where x is the loan slot share and L is pool liquidity. Funds are issued as LP shares and remain under protocol control, removing default risk. See Protocol Reserve and Non-Collateral Loan.
How does Firyx guarantee loans without collateral?
Upon borrowing, users need to deposit a small upfront amount of tokens called the Reserve, calculated to be slightly larger than the total expected interest payment.
Firyx then issues the borrowed funds as liquidity provider (LP) shares in a designated, high-yield strategy. Crucially, the capital never leaves the protocol's control, completely eliminates the risk of a borrower running away with the money (default) or using it for an unapproved purpose.
Does the protocol have sufficient liquidity for repayments/withdrawals?
Firyx pools are Loan Positions holding LP shares under protocol control. Withdrawals are executed from the Loan Position via the Dashboard “Withdraw” flow, subject to available liquidity. Borrowing is constrained by available liquidity and asset borrow caps. The dynamic interest model raises APR as utilization increases, discouraging over-borrowing and helping retain liquidity. The Protocol Reserve is added to pool liquidity, further supporting availability.
To proceed, review Interest Rate Model
Are there incentives or penalties to reduce default risk?
Yes—Firyx uses structural incentives that eliminate borrower default risk.
Borrowed funds are issued as LP shares and never leave protocol control, removing runaway/default risk. Borrowers are incentivized to perform because they earn LP yield on their share. See Non-Collateral Loan.
A Protocol Reserve (slightly above expected interest) is deposited upfront and used to pay interest automatically, protecting lenders. See Protocol Reserve.
A dynamic interest model raises APR with utilization to curb over-borrowing. See Interest Rate Model.
Incentives align via shared yield. See Yield & Rewards.
Lending
How do I lend?
Browse to the "Open Loan Position" section and click on "Open Loan Position" for the asset you want to lend. Select the amount you'd like to lend and submit your transaction. Once the transaction is confirmed, your Loan Position is successfully registered and you begin earning interest.
How much can I earn?
Lenders receive continuous earnings that evolve with market conditions based on:
The interest rate payment on borrow positions: Lenders share the interests paid by borrowers corresponding to the average borrow rate times the utilization rate. The higher the utilization of a reserve, the higher the yield for suppliers.
AMM trading fees: Lenders earn yield from trading fees generated by the underlying Concentrated Liquidity Market Maker (CLMM).
Historic rates can be viewed by clicking on individual tokens to view their corresponding reserve details page.
Where are supplied tokens stored?
Supplied tokens are stored in publicly accessible Objects on the Aptos blockchain.
How do I withdraw?
Withdrawing from the Firyx Protocol occurs on the Loan Position smart contract. Withdrawal transactions can be performed through the Firyx Protocol Interface by navigating to the "Dashboard" section and clicking "Withdraw." Select the amount to withdraw and submit the transaction.
Borrowing
How do I borrow?
You can execute a borrow from the Firyx smart contracts or user interface. On the Firyx Protocol Interface, head to the Borrow section and click on "Borrow" for the Loan Position share you want to borrow. Adjust the amount you need, and confirm the transaction in your wallet.
How much can I borrow?
The maximum amount you can borrow depends on the available liquidity and the asset borrow cap.
How much would I pay in interest?
The interest rate you pay for borrowing depends on the supply and demand ratio of the asset and interest rate curve parameters determined by Firyx. You can find the current borrow rate for each borrowable token in the Markets tab of the Firyx Protocol Interface. Historic rates can be viewed by clicking on individual tokens to view their corresponding reserve details page.
How much can I earn?
Borrowers earn their share of the Loan Position yield minus the interest rate from the loan.
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