Nolus Earn lets you lend idle assets to the protocol and collect interest paid by borrowers who open leverage positions. This article explains where that yield comes from and how it behaves over time.
What You Can Lend
Nolus Earn has three lending pools, one for each active protocol:
USDC (native, Noble)
BTC
OSMO
Each pool funds the leverage positions that borrow that asset, so the interest you earn comes directly from borrower payments in the same pool.
Immediate Returns through a Cash-Basis Model
Nolus works on a cash basis, which means you are credited as borrowers actually pay, not on projected or accrued amounts. The yield you see is real yield backed by payments that have been made.
Collections run automatically at set intervals, so a borrower who pays late does not interrupt the flow of returns to the pool.
Yields and Deposit Management
Lenders on Nolus have earned an Annual Percentage Yield in the 6% to 15% range on stablecoin deposits, and up to 15% on the other lending assets. Rates depend on how much of the pool is actually borrowed, so they move with demand.
To protect those rates, Nolus can limit new deposits when utilization of a pool drops below the level needed to sustain them. Capping inflows in a quiet period keeps the yield meaningful for the lenders already in the pool instead of diluting it across idle capital.
Compound Returns
Interest you earn stays in the pool and starts earning alongside your original deposit. Returns compound rather than paying out at a flat rate, so a deposit left in place grows faster the longer it sits. That makes Earn most rewarding for lenders with a long horizon.