Liquidity provision

The Rush APY looks attractive, wow! How to earn it safely?

To secure initial liquidity and improve slippage for traders, token creators borrow funds from the lending pool for up to 24 hours. They pay a deployment fee based on current pool utilization. Loans can be unwound by anyone when they hit the deadline or reach the post-unwinding liquidity target (currently set at 2.5 ETH). Rush takes a 20% cut of this upfront fee, which is the platform's sole revenue source for now.

The lending pool is an immutable, slightly modified ERC-4626 vault where lenders receive shares for their contributed liquidity. Each share earns ETH with each new token deployment and it can later be converted back to ETH at a higher rate. Anyone can add ETH (as long as the supply cap isn’t reached) or withdraw ETH (if there’s enough unused liquidity) at any time.

The shown APY is based on the pool’s current utilization rate, meaning it will only be achieved if that rate remains constant throughout the year. Rush uses a utilization-rate model similar to Aave and Compound, where the deployment fee increases once an optimal utilization rate is reached. This setup incentivizes more ETH liquidity to flow into the pool, ensuring there’s enough available ETH for withdrawals when needed.

We take lending pool security seriously, which is why there’s a current supply cap of 75 ETH (adjustable with increased activity). All our contracts are fully audited, with a core focus on making it impossible to drain the pool. In case of an emergency, new deployments can be paused, and active pools can be unwound early, before reaching their goals or deadlines.