How it works
Lulo takes an index-fund approach to stablecoin yield, spreading your deposit across leading lending protocols through a systematic allocation informed by TVL and rate. Coverage is integrated into every allocation from the start, so your capital is protected while it earns.
1. Deposit
Connect your wallet and deposit USDC or another supported stablecoin. You can choose between Protected and Boost depending on your risk preference, and your funds are routed through Lulo's audited smart contracts directly to the underlying protocols.
2. Systematic Allocation
Lulo allocates your deposit across leading stablecoin lending protocols using a systematic approach informed by each protocol's TVL and prevailing rate. As market conditions shift, the system is designed to rebalance accordingly, following the same rules-based methodology that underpins index funds in traditional finance.
3. Earn with Coverage
Your capital earns yield across all integrated protocols simultaneously, and for Protected deposits, coverage is active from the moment your funds are deployed. In the event that a covered protocol suffers a loss due to an exploit, oracle failure, or bad debt, the smart contract compensates your deposit directly.
4. Withdraw Anytime
Protected deposits can be withdrawn at any time with no lockup period. Boost deposits carry a lockup period because they underwrite the coverage system and must remain available in the event that a covered loss occurs.
How the Index Works
Lulo constructs its allocation from leading DeFi lending protocols, weighting each position systematically based on TVL and prevailing lending rate. Protocols that hold more value and offer competitive rates receive a larger share of the allocation, and weights are designed to adjust as these inputs change over time.
The result is that your yield is drawn from the most established and most liquid protocols in DeFi, and the allocation is designed to stay current as market conditions evolve.