Precept

Precept is a lending protocol on Stellar, built by Templar. Each market is its own Soroban pool with its own assets, parameters and oracle. Lenders deposit an asset and earn the interest borrowers pay, and borrowers post collateral to borrow against it.

What defines Precept

• Markets are isolated. A loss is settled inside the reserve it came from, and it does not reach another market.
• Lenders earn all the interest. There is no protocol fee, and the backstop's share of interest is fixed at zero.
• Lenders carry the risk. If a borrower defaults and the collateral does not cover the debt, the lenders of that reserve take the loss, pro rata, as soon as it is recognised.
• There is no insurance fund. A backstop contract is still deployed because a pool needs one to activate, but it cannot pay anyone. See The disabled backstop.
• Live markets are fixed. Pool, backstop and factory contracts cannot be upgraded, and a live reserve's parameters cannot be changed. A reserve can only be switched off.
• Security is open to inspection. Audit reports, proofs and release checksums are described on Security and audits.

Where to start

The app is at precept.templarfi.org.

• Using the app: Get started walks through connecting a wallet, lending, borrowing, repaying and withdrawing.
• Lending or borrowing: check the addresses on Official markets, then read Lending or Borrowing.
• Weighing the risk: read the short version. The rest of Risks lists what can cost a lender money and every lever anyone holds over a market.
• Building on Precept: start with Contracts and Integrate with a pool.
• Creating a market: start with Before you create a pool.