Protocol documentation
How MuseLend accounts for risk
MuseLend separates realized sale reserves, senior debt and junior capped coverage. This interface documents the intended V1; deployed contracts remain the authoritative implementation.
Opening
Creator tokens are transferred and sold atomically through a typed adapter. Net USDC is measured from the actual balance delta and isolated by position before any senior loan is originated.
Interest
Senior debt uses a high-precision borrow index and debt shares. The utilization curve has a kink and an on-chain maximum APR used for worst-case maturity checks.
Settlement
A borrower may repay and buy back the full token amount within the coverage cap, add a bounded top-up, or accept an exact-input capped settlement returning the amount the market can provide.
Default
After maturity and grace, anyone may settle. The sale reserve pays senior debt with priority; the synthetic right expires and unused junior coverage is released.