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Lending

Stake DAO Lending lets you borrow stablecoins against select Stake DAO strategy positions without forfeiting rewards. Your collateral stays staked in its native vault, continues to earn incentives, and is wrapped into a non-transferable token that is accepted by the lending protocol.

What Lending Enables

  • Borrow without exiting yield: Keep rewards while accessing liquidity
  • Use LP positions as collateral: Wrap Stake DAO shares from one of our Strategy Vaults or the associated raw Curve LP tokens
  • Risk-managed markets: Only curated strategies are enabled at launch
  • Simple lifecycle: Wrap, borrow, repay, withdraw

How It Works

Stake DAO wraps your strategy position into a dedicated collateral token.

Deposit

You deposit Stake DAO shares or raw Curve LP tokens into a wrapper

Supply

The wrapper automatically supplies the collateral on your behalf to the lending protocol

Borrow

You borrow the market's loan asset against that collateral

Earning

You keep earning rewards while the position is borrowed

Repay and Withdraw

You repay and withdraw when ready

The wrapper token is non-transferable and only moves between you and the lending protocol. This prevents approval phishing and keeps accounting deterministic.

Who This Is For

  • LP holders who want liquidity without giving up rewards
  • Users comfortable managing a borrowing position and liquidation risk
  • Integrators who want to build on top of Stake DAO strategies

Key Concepts to Know

Wrapper Tokens

When you supply collateral, you receive a wrapper token that represents your staked strategy position. It is:

  • 1:1 backed by RewardVault shares
  • Non-transferable (only the lending protocol can move it)
  • Reward-aware (keeps track of main and extra incentives)

Rewards Continue

Your rewards are still earned while your collateral sits in a lending market. You can claim them at any time through the wrapper.

Liquidation Risk

If the value of your collateral falls or your debt grows, your position can be liquidated. Liquidation seizes a portion of your collateral to repay your debt. This reduces your position and stops rewards on the seized amount.

Supported Markets

At launch, only Morpho Blue is supported as a lending protocol, and a limited selection of curated Stake DAO strategies is enabled for lending. The loan asset is specific to the market, and currently, only USDC markets are available. Please check the Stake DAO app for the latest markets and parameters.

Getting Started Checklist

  • Hold LP tokens for a supported Stake DAO strategy
  • Review market parameters (LLTV, interest rate model)
  • Understand liquidation risk and keep a safety margin