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Where Does the Interest/Yield Come From?

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Written by Philip Mburu
Updated over 2 months ago

Think of it like a savings circle with rules written in unbreakable code.

  1. You put your digital dollars (USDC) into a Hurupay “vault.”

    • Picture a transparent piggy-bank that only you can open.

  2. Borrowers take a loan from that piggy-bank—but only after leaving extra value as a safety deposit.

    • Example: They hand over $120 worth of crypto to borrow $100.

    • If they don’t pay back, the safety deposit is sold to cover the loan.

  3. Borrowers pay interest every day.

    • That interest flows back into the piggy-bank and shows up as your daily earnings.

    • We automatically add today’s earnings to tomorrow’s balance, so it keeps growing (snowball effect).

  4. The rules are enforced by computer code, not people.

    • The code lives on public blockchains and can’t be changed or cheated.

    • Hurupay works with a proven platform called Morpho and other top lending markets that follow these rules.

  5. Why USDC vault, not local currency?

    • USDC is a digital dollar backed 1-for-1 by the US dollar. Because it stays pegged to $1, both borrowers and lenders like its stability and ease of moving around the world.

    • Your earnings stay in dollars, keeping their value even if your local money weakens.

  6. Safety checks, 24/7.

    • We only use lending pools that are heavily inspected (“audited”) and have plenty of spare cash so you can withdraw anytime.

    • Our system watches them nonstop and will move your funds if a pool looks risky or pays less.

Bottom line:
People pay to borrow your digital dollars. They leave a bigger deposit than the loan, the code makes sure they repay, and the interest they pay becomes your yield—credited to you every single day.

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