Role Assignment

Assign wallets to each role in the lending protocol. Add wallets via the wallet panel, then select them for each role.

Issuer

No wallet assigned

Loan Broker

No wallet assigned

Depositor

No wallet assigned

Borrower

No wallet assigned

Vault (XLS-65)

Create and manage a Single Asset Vault to hold pooled funds from depositors.

Create Vault

Create a new Single Asset Vault (XLS-65) to pool assets from depositors. The vault will be owned by your connected wallet.

What is a Vault?

A vault aggregates assets from depositors and represents ownership through shares (MPTs). Depositors receive shares proportional to their contribution, which can be redeemed for assets.

Asset Type *

The type of asset the vault will hold.

Assets Maximum (0 = no limit) Maximum total assets the vault can hold.

Vault Options

Private Vault Restricts deposits to permissioned accounts only Non-Transferable Shares Shares cannot be transferred between accounts

Metadata (max 256 bytes)0/256 bytes used.

LoanBroker (XLS-66)

Create a LoanBroker linked to a Vault. The LoanBroker manages loans and first-loss capital.

Create LoanBroker

Create a new LoanBroker object linked to a Vault for managing loans.

Vault ID * The Vault that provides liquidity for loans. Must be owned by the same account.

Management Fee Rate (1/10 bps) (0-10000)0.000% of interest charged as fee. Cannot be changed after creation.

Debt Maximum (0 = no limit) Maximum debt the protocol can owe to the Vault.

Cover Rate Minimum (1/10 bps) (0-100000)0.000% of debt must be covered.

Cover Rate Liquidation (1/10 bps) (0-100000)0.000% of required cover liquidated on default.

Metadata (max 256 bytes)0/256 bytes used.

Loans

Create loans, make payments, and manage loan lifecycle.

Create Loan

Create a new Loan agreement between the Loan Broker and Borrower. Both parties must sign the transaction.

Understanding Dual-Signature (LoanSet)

Why Dual Signatures?

The LoanSet transaction requires signatures from both parties (Loan Broker and Borrower) to ensure mutual consent. This provides:

Mutual Agreement: Both parties explicitly agree to the loan terms before the loan is created
On-Chain Proof: The transaction contains cryptographic proof that both parties consented
Security: Prevents unauthorized loan creation - neither party can unilaterally create a loan

The Signing Flow

Prepare Transaction

Either the Broker or Borrower prepares the LoanSet transaction with all loan terms (principal, interest rate, payment schedule, etc.).

Counterparty Signs

The counterparty (the party NOT submitting) signs the transaction fields to create their signature. This proves they agree to the terms.

Add CounterpartySignature Object

The counterparty's signature is added to the transaction in the CounterpartySignature object:

{
  "CounterpartySignature": {
    "SigningPubKey": "<counterparty_public_key>",
    "TxnSignature": "<counterparty_signature>"
  }
}

Submitter Signs

The submitter signs the complete transaction (including the CounterpartySignature object).

Submit to Network

The fully-signed transaction is submitted. The network validates both signatures before creating the Loan object.

Visual Flow

Loan Broker

1. Prepares tx with loan terms--->

Borrower

<---2. Signs and returns signature

3. Adds CounterpartySignature4. Signs complete tx5. Submits to network

Technical Details

SigningPubKey:The counterparty's public key (hex encoded)

TxnSignature:The counterparty's signature over the transaction fields (hex encoded)

Counterparty Field:Optional - if omitted, defaults to the LoanBroker owner when submitted by borrower

Signing Data:STX prefix (0x53545800) + serialized tx without TxnSignature field

Common Errors

temBAD_SIGNERMissing or invalid CounterpartySignature

tecNO_PERMISSIONSubmitter is not authorized (not the borrower or broker owner)

temINVALID_FLAGInvalid transaction flags specified

tecOBJECT_NOT_FOUNDThe specified LoanBrokerID does not exist

Testing Note

In this testing interface, you provide both seeds (Broker and Borrower) in the form. The application handles both signatures automatically. In a production environment, each party would sign separately using their own wallet.

Loan Configuration

LoanBroker ID *

Principal Amount *

Number of Payments *

Payment Interval (seconds) * (min: 60)~30 days

Grace Period (seconds) (min: 60)~7 days

Interest Rates (1/10 basis points)

Interest Rate (0-100000)5.000% annual rate

Late Interest Rate (penalty premium)2.000% late penalty

Close Interest Rate (early repayment)

Overpayment Interest Rate

Fees (nominal amounts)

Origination Fee

Service Fee

Late Payment Fee

Close Payment Fee

Overpayment Fee (1/10 bps) (0-100000)

Counterparty Signature

Counterparty Address (if not LoanBroker.Owner) If submitting as Broker, this is the Borrower. If submitting as Borrower, leave empty (defaults to Broker).

Counterparty Seed * (for signing) Used to create the CounterpartySignature. Keep secure!

Options

Allow Overpayments (tfLoanOverpayment)

First-Loss Capital

Manage First-Loss Capital to protect depositors from defaults.

Deposit First-Loss Capital

Deposit funds into the LoanBroker's First-Loss Capital pool to protect vault depositors from loan defaults.

About First-Loss Capital:

First-Loss Capital absorbs initial losses when borrowers default. If cover falls below the minimum required (CoverRateMinimum), the LoanBroker cannot issue new loans and fees are redirected to the cover pool.

LoanBroker ID *

Asset Type *

Amount * (in drops)

XLS-66 Lending Protocol

Role Assignment

Vault (XLS-65)

Create Vault

LoanBroker (XLS-66)

Create LoanBroker

Loans

Create Loan

Understanding Dual-Signature (LoanSet)

Why Dual Signatures?

The Signing Flow

Prepare Transaction

Counterparty Signs

Add CounterpartySignature Object

Submitter Signs

Submit to Network

Visual Flow

Technical Details

Common Errors

Testing Note

First-Loss Capital

Deposit First-Loss Capital