> For the complete documentation index, see [llms.txt](https://unflat.gitbook.io/unflat-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://unflat.gitbook.io/unflat-docs/basics/how-earning-works.md). # How Earning through unflat Works From deposit to yield. Here's the complete flow. unflat connects your savings to overcollateralized DeFi lending markets. You deposit stablecoins, they're allocated to vetted lending pools, and you start earning interest immediately. No lockups, no hidden mechanics. ## The 5-step flow ### 1. Deposit USDC Transfer USDC via Coinbase or direct blockchain transfer. European users starting from EUR convert to USDC first. EURC support is on the roadmap. ### 2. Funds enter a secured lending pool Your deposit is allocated to Morpho Protocol, an overcollateralized DeFi lending market with $5B+ managed and zero exploits. Borrowers must lock up more value than they borrow. ### 3. Interest accrues every second Earnings are visible in real-time inside the app. No waiting for monthly payouts. Your balance grows continuously. ### 4. Earn up to \~7% APY Net yield after unflat's 15% performance fee. Rates are variable and depend on market conditions: supply and demand for borrowing. ### 5. Withdraw anytime No lockup period, no penalties. Your funds are returned to you whenever you need them. {% hint style="info" %} **Please don't trust us. Verify.** Every transaction is recorded on-chain. You can independently verify where your funds are and how much they're earning at any time. {% endhint %} ## Who is borrowing, and why? Borrowers use DeFi lending markets for practical reasons: * Accessing liquidity without selling appreciated crypto assets * Managing tax exposure by borrowing instead of selling * Arbitraging price differences across venues * Everyday spending without disrupting portfolios They're willing to pay competitive interest rates for this convenience. That interest flows back to you as yield. ## What happens if a borrower can't repay? Safety comes from overcollateralization. Every borrower locks up assets worth more than they borrow. If their collateral value drops below a safety threshold, the smart contract automatically liquidates it to repay lenders. No human intervention needed. The code handles everything. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://unflat.gitbook.io/unflat-docs/basics/how-earning-works.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.