The Core Mechanic
Think of your collateral as a revenue-generating business. Every week, it earns fees and bribes from the DEX it votes on. 40 Acres lets you borrow against that future revenue today, and automatically uses each week’s earnings to pay down your debt. The simplest mental model: your rewards are your repayment schedule.Step by Step
Deposit your veNFT
Your asset is deposited into a 40acres smart contract and locked as collateral for the duration of the loan, subject to the protocol rules.
Borrow USDC
Your maximum loan amount is calculated based on your assets average weekly rewards multiplied by the epoch multiplier (currently 10 epochs). You receive USDC instantly from the lending vault.
40 Acres votes on your behalf
Your deposited asset is put to work immediately. The 40 Acres vote optimizer allocates your assets voting power to the highest-yielding pools each epoch. You can also vote manually if you prefer; as long as you vote on supported pools.
Rewards repay your loan
Each week at epoch flip, rewards flow in and are automatically applied to your loan balance. 75% goes toward repayment. 20% goes to lenders. 5% goes to the protocol treasury.
Loan Sizing
Your borrow limit is calculated at origination:| Variable | Description |
|---|---|
locked_amount | Size of the asset |
rewards_rate | Average weekly rewards per unit of locked token (recalculated each epoch) |
epoch_multiplier | Currently 10 — the number of epochs you can borrow against |