> ## Documentation Index
> Fetch the complete documentation index at: https://docs.denar.markets/llms.txt
> Use this file to discover all available pages before exploring further.
# Earn with the vault
> Deposit USDG into the Denar vault (dnUSDG) and earn the interest borrowers pay across every stock market — one deposit, capped exposure, withdrawable anytime.
The Denar USDG Vault is the hands-off way to lend: deposit once, and the vault spreads your USDG across the stock markets, collects borrower interest, and returns it through the value of your **dnUSDG** shares.
## How to deposit
USDG (Global Dollar) is the chain's native stablecoin. Acquire it through any venue on the chain.
Go to [denar.markets/app](https://www.denar.markets/app) and connect your wallet.
In **Earn with the vault**, enter an amount and confirm the two transactions: an approval, then the deposit. You receive dnUSDG shares representing your slice of everything the vault holds.
Withdrawing works the same way in reverse, whenever there is unborrowed liquidity — which is the normal state of a healthy market, since interest rates rise sharply as utilization climbs, pushing borrowers to repay.
Lender deposits and withdrawals **never depend on the price oracles**. They work nights, weekends, and even while a market's feed is paused for a corporate action.
## How the vault allocates
The vault fills markets in the order of its supply queue, each up to its **cap**, then overflows to the next. Caps are the vault's blast-radius limiter: whatever happens to one stock, the vault's maximum exposure to it is known in advance.
| Cap rule | Behavior |
| -------------- | ------------------------------------------------------------------------------------------------------ |
| Raising a cap | Takes effect only after a **1-day timelock** — depositors see risk increases coming and can exit first |
| Lowering a cap | **Instant**, including to zero — de-risking never waits |
Denar is currently in its **seed phase** with caps of **2,500 USDG per market** (15,000 total capacity). Caps will rise as liquidation-exit liquidity is proven and the security roadmap progresses.
## What you earn
Your yield is the interest borrowers pay, minus the 10% protocol share. Because idle liquidity earns nothing, the honest number to watch is the **supply APR** shown per market in the app:
```
supply APR = borrow APR × utilization × (1 − protocol fee)
```
When utilization is zero — nobody borrowing — lenders earn \~0% regardless of the headline borrow rate. As borrowing demand grows, both utilization and the adaptive rate rise, and lender yield follows.
## What you're exposed to
If a borrower's collateral gaps below their debt — the classic case is a violent weekend move past the LLTV buffer — the shortfall is written off against the lenders **of that market only**. Conservative LLTVs absorb normal moves; caps bound the worst case; isolation keeps it contained. It is capped and isolated, but not zero.
While a stock's oracle is paused (corporate action, stale feed), liquidations in that market wait, and risk can build until the price returns. Monitoring runs around the clock, and the curator can zero a cap instantly to stop new exposure.
Withdrawals need unborrowed liquidity. If a market is temporarily fully borrowed, your withdrawal waits for liquidity to return — earning interest the whole time. The rate curve makes full utilization expensive and self-correcting.
The core is Morpho Blue — formally verified, immutable, years in production. Denar's additions are small, tested, and open source. An external audit is planned before caps rise significantly.
Yield comes from risk. Deposit what fits your risk tolerance — never more than you can afford to lose.