Leverage your conviction
Use existing Polymarket positions as collateral instead of selling them. Keep your upside while unlocking USDC liquidity.
Why PolyLend exists
For traders: more size on your best ideas. For lenders: yield from prediction markets without picking a side.
Oracle-free design
PolyLend does not rely on price feeds. Risk and rates are determined entirely by lenders making offers on-chain.
Perpetual-style loans
No fixed maturity. Loans can run indefinitely until the borrower repays or a lender calls and a refinancing auction completes.
For traders and for lenders
For tradersPolymarket power users
Borrow without closing your position
Lock in a conviction trade on Polymarket, then post it as collateral on PolyLend to borrow USDC. Re-enter the same market or diversify into new ones.
- •Request a loan with amount and minimum duration.
- •Choose from competing lender offers at different rates.
- •Repay early anytime to reclaim your conditional tokens.
For lendersUSDC native
Earn yield from prediction markets
Provide USDC loans to traders seeking leverage. You choose which markets, which collateral, and what interest rate you are willing to accept.
- •Browse open loan requests filtered by market and collateral.
- •Post principal + rate offers, optionally with a minimum duration.
- •Call loans after the minimum period and rely on auctions to exit or take collateral.
How the protocol works
High level overview of the core state machine: request → active loan → auction → repaid or liquidated.
1. Loan initiation
A borrower locks conditional tokens as collateral and creates a loan request. Lenders post offers specifying principal, interest rate, and optional minimum duration. When the borrower accepts an offer, the loan becomes active and USDC is transferred.
2. Repayment and auctions
Interest accrues continuously. Borrowers can repay at any time, reclaiming their collateral. After the minimum duration, the lender may call the loan, triggering a Dutch auction in interest-rate space to find a new lender or result in liquidation.
Risks you should understand
Market & liquidation risk
If the market moves against the borrower, the collateral may be worth less than the outstanding debt. If an auction fails to refinance the position, the lender may receive the collateral at a loss or the borrower may be effectively liquidated.
Important: Over-collateralization is not a guarantee against loss. Extreme market moves and failed auctions can still produce bad outcomes.
Protocol & integration risk
PolyLend is an unaudited smart contract system that integrates with Polymarket’s conditional tokens. Bugs, integrations, or unexpected edge cases can result in loss of funds for both traders and lenders.
Do not use PolyLend with funds you cannot afford to lose. Treat it as an experiment, not a savings product.
Frequently asked questions
Collateral and loans are managed by smart contracts. There is no traditional custodian, but the code is unaudited and may contain bugs. Always verify contract addresses and understand the trade-offs before interacting.
If a lender calls a loan and the refinancing auction fails, the loan can be closed by transferring collateral to the lender. The borrower loses their position and may still realize a loss relative to the debt they owed.
PolyLend is designed for Polymarket conditional tokens on the same chain where those markets are deployed. Check the docs and UI for the current supported network and collateral types before interacting.
PolyLend is for advanced users who understand prediction markets, on-chain lending, and smart contract risk. It is not suitable for users seeking guaranteed returns or a simple savings product.