📍 Introduction

Managing liquidity pools effectively is key to optimizing lending returns on Rain.fi. Lite Mode provides an intuitive and simplified way to keep your pool competitive by allowing quick adjustments to key parameters without dealing with complex configurations.

Once your pool is created, it’s important to keep it updated and aligned with market conditions to attract borrowers and maximize earnings. This includes:

• Adjusting interest rates (APY) to stay competitive.

• Modifying Loan-to-Value (LTV) ratios to balance risk and lending capacity.

• Adding new tokens or NFTs as collateral to expand borrowing options.

To make informed adjustments, regularly check the Earn Page, which lists the performance of existing pools by asset type. This helps identify which pools attract the most borrowers, the prevailing interest rates, and how to position your pool competitively.

📌 If you haven’t created a pool yet and want to get started, check out our step-by-step guide to create your pool here!

Before diving into pool management in Lite Mode, let’s first go over the key lending concepts that impact both lenders and borrowers on Rain.fi: APR, APY, and LTV.

Understanding APR, APY, and LTV

Before managing your pool, it’s important to understand three essential metrics that impact both lenders and borrowers on Rain.fi:

• APR (Annual Percentage Rate) — The simple annual interest rate applied to loans.
• APY (Annual Percentage Yield) — The compounded annual return if interest is reinvested.
• LTV (Loan-to-Value) — The percentage of a borrower’s collateral that can be borrowed.

These factors influence how competitive your pool is, the risk you take as a lender, and the returns you can expect.

💰 What is LTV?

The Loan-to-Value (LTV) ratio determines how much a borrower can take as a loan compared to their collateral value.

If a borrower provides 1,000 USD as collateral:

• With an LTV of 50%, they can borrow up to 500 USD.

• With an LTV of 70%, they can borrow up to 700 USD.

A higher LTV attracts more borrowers but increases risk if the collateral loses value. A lower LTV reduces risk but may generate lower interest earnings.

⏳ Loan Duration — How It Affects Your Pool

The loan duration impacts both liquidity and profitability:

• Short-term loans (1–7 days) allow for quicker reinvestment and lower exposure.
• Medium-term loans (7–30 days) offer a balance between flexibility and returns.
• Long-term loans (30+ days) generate more total interest but lock funds for a longer period.

📈 APR vs. APY — What’s the Difference?

• APR is the simple interest rate a borrower pays on a loan.
• APY includes compounding, meaning interest earned is reinvested, leading to higher long-term returns.

Generally, higher LTV pools tend to offer higher APR/APY, as lenders take on more risk.

Now that you understand these key concepts, let’s dive into how to manage your pools effectively. 🚀

Overview of the Pool Management Interface

Let’s look at the three main sections used to manage pools on Rain.fi.

This section provides a high-level view of your lending pools, helping you assess their profitability.

Key metrics include:

• Global Statistics — Provides an overview of your lending activity, including total earnings, active loans, and total funds lent.
• Vaults & Pools Section — Allows you to view and manage individual pools, adjust settings, and modify liquidity.
• Loan Activity — Tracks borrower transactions, showing active and past loans.

Vaults & Pools — Manage Individual Pools

On Rain.fi, understanding the difference between Vaults and Pools is essential for managing your lending strategy effectively.

• Vaults are containers that hold multiple lending pools. Each vault can have one or more pools inside it.
• Pools are individual lending markets where you set interest rates, loan duration, collateral parameters, and liquidity conditions.

How They Work Together ?

When you add liquidity, you do it at the vault level, making funds available for all pools inside that vault. Each pool within a vault can have different settings, allowing lenders to create diverse loan offerings while managing risk efficiently.

📌 Think of a Vault as a portfolio, and Pools as individual lending strategies within that portfolio.

🔧 Core Actions in Pool Management (Lite & Pro Mode)

Regardless of whether you use Lite Mode or Pro Mode, here are the essential actions you can take to manage your pools effectively.

→ Customize your pool with Name and Picture:

→ Add or withdraw liquidity in Vaults:

⚠️ You can only withdraw liquidity that is not being used in active loans.

→ Viewing Pool Informations:

→ Monitor pool performance and adjust lending settings:

⬇️ Next, let’s see how to set up and adjust your pool settings below ⬇️

⚙️ Managing Pools in Lite Mode — Quick and Easy Adjustments

Lite Mode is designed for fast and simple pool management. It allows lenders to adjust key settings without complex configurations. For those looking for more advanced control, Pro Mode will be covered in a separate article.

How to Edit a Pool in Lite Mode:

• Interest Rate (APY) 📈 — Adjust the annual percentage yield for borrowers.
• Loan Duration ⏳ — Set the minimum and maximum loan durations.
• Collateral List 💎 — Choose which tokens or NFTs can be used as collateral.
• LTV Settings 🔄 — Adjust the Loan-to-Value (LTV) ratio for each collateral type.

➡️ Click on “Update pool” to apply the updates.

📌 Manage your pools now via the My Pools page and stay competitive using the Earn Page. Compare your pool with others to ensure your interest rate remains attractive — if it’s too high, borrowers may opt for another pool. Adjust accordingly to maximize your lending opportunities.

🔗 Full article on how to create your pool step-by-step

🔗 Rain.fi Links:

Site: https://rain.fi/
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Twitter: https://twitter.com/RainFi_
FAQ : https://app.rain.fi/faq

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