Earn

Money can work in three places on Tapehouse. Each answers the same four questions: what it earns, how you leave, what it bears and what your account holds. In this guide you read each place's terms from the chain and then enter and leave it.

Before you start#

The client, deployments, wallet, owner and usdgAbi of open an account and borrow, and USDG in your wallet. In the app, /earn lists these places in one ledger, and the smart account holds the shares: a deposit takes your wallet's USDG by permit in one sponsored operation, and withdrawals go to your wallet.

Supply USDG#

SupplyVault holds the USDG the margin accounts borrow. You deposit USDG and receive thUSDG shares of an ERC-4626 vault, and earn all the interest the borrower pays.

import { supply } from '@tapehouse/sdk'

const { supplyRate, borrowRate, utilization, idle, debt, totalAssets, open } = await supply.market(client, deployments)

const assets = 1_000_000_000n // 1,000 USDG

await wallet.writeContract({
  address: deployments.tokens.USDG,
  abi: usdgAbi,
  functionName: 'approve',
  args: [deployments.tapehouse.SupplyVault, assets],
})
await wallet.writeContract(supply.deposit(deployments, { assets, receiver: owner.address }))

const { shares, assets: worth, maxWithdraw, maxRedeem } = await supply.lender(client, deployments, owner.address)

await wallet.writeContract(supply.withdraw(deployments, { assets: maxWithdraw, receiver: owner.address, owner: owner.address }))

Join the gap backstop#

GapBackstop is the junior tranche behind the vault's lenders, an ERC-4626 vault over USDG. Its depositors earn the weekend premium the accounts set aside for it, and cover first what a position emptied by liquidation still owes.

import { backstop } from '@tapehouse/sdk'

const terms = await backstop.state(client, deployments)
await wallet.writeContract(backstop.deposit(deployments, { assets, receiver: owner.address }))
const mine = await backstop.depositor(client, deployments, owner.address, [deployments.tokens.TSLA])

Approve USDG to deployments.tapehouse.GapBackstop before the deposit. state returns what the backstop holds, its exposure limit, what is left of it and what it covered, for the cross positions and for each asset's isolated positions, with its cooldown, withdrawal window and the premium's split. depositor returns your shares, what they are worth, your cooldown and the gains you have not claimed.

To leave, start a cooldown for all your shares, then redeem inside the window:

await wallet.writeContract(backstop.startCooldown(deployments))
// a week later, for six days, while redemptions are open
await wallet.writeContract(backstop.redeem(deployments, { shares: mine.shares, receiver: owner.address, owner: owner.address }))

At the reopening auction the backstop buys what the bids leave. The Stock Tokens it buys belong to its depositors at that moment, in proportion to their shares, and backstop.claimGains(deployments, token) sends them to you. Deposits are shut from the moment the accounts record a coming close until a day after its reopening, so no one buys into gains the closure already made.

Lend a Stock Token#

A position can lend Stock Tokens through the asset's lending vault and earn the fee shorts pay. The position keeps the vault's shares, which count for the asset in the engine at 5% less in equity.

const token = deployments.tokens.TSLA
const position = CROSS

await wallet.writeContract(accounts.lend(deployments, { position, token, amount, account }))
const { lent, sellable, claim, recalls } = await accounts.lending(client, deployments, account, position, token)

await wallet.writeContract(accounts.unlend(deployments, { position, token, amount, account }))
await wallet.writeContract(accounts.recall(deployments, { position, token, amount, account }))
await wallet.writeContract(accounts.settle(deployments, { account, position, token }))

unlend brings tokens back as far as the vault can return them now. recall takes the vault's free tokens back at once and queues the rest as a ticket, which the borrower returns within the vault's notice or by a buy-in. settle, which anyone may call, moves what has come back into the position's holding. A position may keep three recalls open.

Where nobody shorts the token, a lending vault pays no yield. The app names none in that case.

Errors you may hit#

Next#

• Borrow, the other side of the supply vault.
• The supply vault and the gap backstop.
• The reopening auction, where the backstop buys.