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UsersLending & Farm — Step-by-step (DAI example)

Lending + Farm User Guide (DAI example)

This step-by-step guide shows a common user flow using DAI as the example asset. It covers two separate activities:

  1. Borrowing DAI from the Lending page using wrapped Sonic (wS) as collateral.
  2. Earning PSW rewards by staking psDAI in the Farm (a Vault → Farm flow).

✅ Quick checklist before you start

  • Connect your wallet.
  • Switch to the correct network used by the app (Sonic Testnet).
  • Keep a small amount of native gas token (S) in your wallet for fees.

Quick Overview

There are two main ways to interact with the platform:

Borrow DAI

Deposit collateral → Borrow DAI → Repay later

Example flow:

  1. Convert S → wS (wrapping Sonic token).
  2. Add wS as collateral on Lending.
  3. Borrow DAI against that collateral.
  4. Repay the loan when ready.

Earn Farming Rewards

Deposit DAI → Receive psDAI → Stake psDAI → Earn PSW rewards

Example flow:

  1. Deposit DAI into the psDAI vault.
  2. Receive psDAI shares.
  3. Stake psDAI in the Farm.
  4. Harvest PSW rewards.

Token Glossary

  • S – Native gas token on Sonic.
  • wS – Wrapped Sonic (used as collateral in lending).
  • DAI – Stablecoin you can borrow and deposit in vaults.
  • psDAI – Vault share token received after depositing DAI.
  • PSW – Reward token earned from farming.

Transaction Approvals

Some actions require two wallet transactions:

  1. Token approval – a one‑time permission for the contract to use your tokens.
  2. The actual operation – deposit, borrow, swap, stake, etc.

This is normal for ERC‑20 tokens. Always confirm both when prompted.

Get Collateral First (wS)

Borrowing on the Lending page requires wS (Wrapped Sonic) as collateral. If you only hold the native S token, you must wrap it first.

Wrap S → wS

  1. Open the Swap page (/swap).
  2. Select the pair S → wS.
  3. Enter the amount of S to convert. This action wraps Sonic rather than performing a market trade.
    • Fees are minimal.
    • Default slippage is usually fine.
  4. Click Swap and confirm the transaction in your wallet.

Result: your wallet now holds wS, ready for use as collateral.

Part A: How To Borrow DAI

1. Open the Lending page

Navigate to /lending.

2. Select the DAI market

In 01 · SELECT A MARKET:

  • Choose the market whose asset is DAI.
  • Click Refresh in 02 · MARKET STATS after selecting.

3. Add wS collateral

Collateral is the asset you lock to borrow against.

  • Go to 04 · ACTIONS → COLLATERAL tab.
  • Enter the amount of wS you want to deposit.
  • Click Approve + Add Collateral and confirm the wallet transactions.

Your position will update to show the new collateral.

4. Check how much you can borrow

Look in 03 · YOUR POSITION for Max Borrowable (Est.). This is your safe borrowing limit based on collateral.

5. Borrow DAI

  • Open the BORROW tab.
  • Enter the amount of DAI you want (or press MAX carefully).
  • Click Borrow DAI and confirm the transaction.

⚠️ Avoid borrowing the maximum. A good beginner rule is to borrow 60–80 % of the estimated max to maintain a safety buffer.

6. Verify borrow success

  • Check Borrow Amount in 03 · YOUR POSITION.
  • Look at your wallet balance to see the received DAI.

7. Repay later

When you want to reduce or close your debt:

  • Switch to the REPAY tab.
  • Enter an amount (or press MAX).
  • Click Approve + Repay and confirm.

Borrowing Safety Notes

  • Borrowing close to your limit increases liquidation risk.
  • If collateral value drops, your position may be liquidated.

Best practices:

  • Maintain a safety buffer.
  • Never borrow 100 % of your limit.

Part B: How To Stake in psDAI Pool (Vault → Farm)

⚠️ Important: You cannot stake DAI directly in the Farm. First convert DAI into psDAI vault shares.

Flow:

  1. Deposit DAI into Vault → receive psDAI.
  2. Stake psDAI in Farm.

1. Go to Vaults and get psDAI

  • Open /vaults.
  • Select the psDAI Vault.
  • Deposit the amount of DAI you want and confirm wallet transactions.

Result: you will have psDAI vault shares in your wallet.

2. Open Farm page

Navigate to /farm.

3. Select psDAI Pool

In 01 · SELECT A POOL, choose psDAI Pool and click the pool card. Then click Refresh (or wait for auto‑refresh).

4. Stake psDAI

  • In 03 · ACTIONS, stay on the Stake tab.
  • Enter the amount of psDAI (or press MAX).
  • Click Stake and confirm wallet transactions.

5. Track rewards

In 02 · YOUR POSITION you’ll see:

  • Staked
  • Boosted
  • Pending Rewards

Rewards are paid in PSW. Click Harvest to claim.

6. Unstake when needed

Switch to the Unstake tab, enter an amount (or MAX), and click Unstake.

7. Convert psDAI back to DAI (Optional)

To exit completely:

  • Return to /vaults → psDAI vault.
  • Withdraw/redeem your shares to receive underlying DAI.

This reverses the initial vault deposit.

Common Issues and Quick Fixes

Wrong Network

Symptoms:

  • Missing balances
  • Buttons not working
  • Transactions failing

Fix: Switch wallet network to Sonic Testnet.

No Borrow Capacity

Symptoms:

  • Max borrowable is zero
  • Borrow button disabled

Fix: Add more wS collateral.

Cannot Stake in Farm

Symptoms:

  • Stake fails
  • Balance shows zero

Fix: Ensure you’ve deposited DAI into the psDAI Vault first.

Transaction Keeps Failing

Try smaller amounts, click Refresh, and re‑check balances/approvals.

  1. Swap a small amount of S → wS.
  2. Deposit a small amount of collateral in Lending.
  3. Borrow a small amount of DAI.
  4. Repay the DAI.
  5. Deposit a small amount of DAI into the psDAI vault.
  6. Stake a small amount of psDAI in Farm.
  7. Harvest once.
  8. Unstake and redeem.

This walkthrough confirms that your wallet, network, and approvals are working before you use larger sums.

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