Lending
How lenders supply liquidity to the LPP and earn yield.
For each supported denomination there's a dedicated Liquidity Providers' Pool (LPP). Each LPP operates with a single LPN (Liquidity Pool's Native currency) and serves all lenders who deposit liquidity in that currency.
When a user deposits assets into an LPP, they receive interest-bearing CW20 receipt tokens called nLPN (e.g., nUSDC, nATOM). These represent the lender's share in the pool and accrue interest over time through an index-based accrual: the price of nLPN rises proportionally as borrowers repay interest into the pool. Each nLPN reflects a fraction of the total pool value, including both the original liquidity and accrued interest from active loans.
On redemption, the lender gets back their share of the pool (principal plus accrued interest) at the current nLPN/LPN exchange rate.
The LPP is a hub: lenders deposit LPN and mint nLPN (a receipt token whose price relative to LPN drifts up as borrowers pay interest into the pool); Lease contracts draw loans against that liquidity and return principal + margin interest; the Treasury periodically tops up NLS incentives that lenders claim alongside the underlying yield.