GX Lend
Overview
GX Lend is a decentralized lending and borrowing protocol purpose-built for GX Exchange, deployed on Arbitrum One. Users supply assets to earn yield or borrow against their collateral. All interactions occur through the GX interface at gx.exchange/lend.
How It Works
Supplying Assets
- Deposit USDC, ETH, or BTC into GX Lend
- Receive interest-bearing gxTokens (e.g., gxUSDC) representing your deposit
- gxToken balance increases over time as interest accrues
- Withdraw at any time by redeeming gxTokens
Borrowing
- Supply collateral (ETH, BTC, or other supported assets)
- Borrow up to the asset’s loan-to-value (LTV) ratio
- Pay variable or stable interest rates set algorithmically by supply/demand
- Repay loan plus interest to unlock collateral
Key Features
| Feature | Description |
|---|---|
| Variable Interest Rates | Algorithmically determined by utilization ratio |
| Stable Interest Rates | Fixed-rate borrowing for predictable costs |
| Flash Loans | Borrow and repay within a single transaction |
| Health Factor | Real-time collateral health monitoring |
| gxTokens | Interest-bearing receipt tokens (ERC-4626 compatible) |
| Liquidation Engine | Automatic liquidation of undercollateralized positions |
Interest Rate Model
Interest rates are determined algorithmically based on the utilization ratio of each asset pool:
- Low utilization — Low rates to encourage borrowing
- Optimal utilization (~80%) — Moderate rates balancing supply and demand
- High utilization (>80%) — Steep rate increase to attract more suppliers
Current APYs
| Asset | Supply APY | Borrow APY |
|---|---|---|
| USDC | 3.2% | 5.8% |
| ETH | 1.8% | 4.2% |
| BTC | 0.9% | 3.5% |
APYs are variable and adjust algorithmically based on pool utilization. The rates above reflect current conditions and will change over time.
Health Factor
Your health factor indicates how safe your borrowed position is relative to your collateral:
| Health Factor | Status | Action |
|---|---|---|
| >= 2.0 | Healthy | No action needed |
| >= 1.5 | Good | Position is safe but monitor regularly |
| >= 1.2 | Caution | Consider adding collateral or repaying debt |
| < 1.2 | At Risk | Liquidation is imminent — add collateral or repay immediately |
When the health factor drops below 1.0, the position becomes eligible for liquidation.
Risk Parameters
| Asset | LTV | Liquidation Threshold | Liquidation Bonus | Reserve Factor |
|---|---|---|---|---|
| USDC | 80% | 85% | 5% | 10% |
| ETH | 80% | 82.5% | 5% | 15% |
| BTC | 70% | 75% | 10% | 15% |
Smart Contracts
| Contract | Description |
|---|---|
GXLendPool.sol | Main lending pool — supply, borrow, repay, withdraw, liquidation |
GXOracle.sol | Price oracle using Chainlink feeds on Arbitrum |
gxUSDC.sol | Interest-bearing USDC receipt token (ERC-20 + ERC-4626) |
GXInterestRate.sol | Algorithmic interest rate model based on utilization |
GXDataProvider.sol | Frontend data aggregator for balances, rates, health factors |
GXTreasury.sol | Collects reserve factor revenue for the GX Treasury |
Revenue: The Reserve Factor
GX Lend earns revenue through the reserve factor — a percentage of all interest paid that flows to the GX Treasury:
// GXLendPool.sol -- Reserve factor revenue
uint256 public reserveFactor = 1000; // 10% (basis points)
function _handleRepayment(address asset, uint256 totalInterest) internal {
uint256 toTreasury = (totalInterest * reserveFactor) / 10000;
uint256 toSuppliers = totalInterest - toTreasury;
gxToken.accrueInterest(toSuppliers);
IERC20(asset).transfer(GX_TREASURY, toTreasury);
}Revenue at scale:
- $10M USDC loans at 8% APY = $800,000/year interest
- 10% reserve factor = $80,000/year to GX Treasury
- $100M TVL = $800,000/year passive revenue
Liquidation
When a borrower’s health factor drops below 1.0, their position becomes eligible for liquidation:
- Liquidators repay a portion of the borrower’s debt
- In return, liquidators receive the borrower’s collateral at a discount (liquidation bonus)
- The GX Treasury earns a share of the liquidation bonus (5-10%)
Source
All contracts are deployed on Arbitrum One with Chainlink oracle integration.