FAQ

Sapwood is an open, self-custody lending market where participants act as depositors or borrowers. Depositors supply liquidity to a market and earn a variable yield, while borrowers draw against collateral worth more than the amount they take out.

Through the web app in any modern browser, or directly against the contracts if you prefer. Depositing, borrowing, repaying and withdrawing are each a transaction you sign yourself — nothing moves without your signature.

Yes. The protocol never holds your keys, so you connect a self-custody wallet of your choice. Browser extensions and hardware signers both work, and there are no accounts, emails or passwords to create.

Depositing and withdrawing carry no protocol fee. You pay the network's own transaction cost for every signed action, and borrowers pay interest that accrues each block at the market's prevailing rate — currently 3.84% on the largest pool.

Open the hosted app, or reach the same markets through any interface built on the public contracts. No front end is privileged, and the deployment addresses are published in the docs so you can verify what you are connecting to.

Every market is mirrored on a public test network where balances carry no value. Point your wallet at the Larchnet testnet, claim test assets from the faucet, and walk through a full deposit-and-borrow cycle at no risk.

A single market can be paused by governance if an asset becomes unsafe: new deposits and borrows stop while repayment and withdrawal stay open. No individual party can seize, redirect or spend a depositor's balance.

A token contract requires an explicit allowance before any other contract may move your balance. The approval you sign grants that allowance to the one market you are using, and you can lower or revoke it whenever you like.