How It Works
Purinta is powered by Morpho Blue - a trustless, efficient lending protocol and one of the most audited and battle-tested foundations in DeFi. It enables the creation of isolated lending markets, each defined by a specific collateral/loan token pair and risk parameters. Purinta uses it as its lending engine, so all borrowing, collateral management, and liquidation logic runs on Morpho's smart contracts. This infrastructure is invisible from your perspective as a user, but it means Purinta is built on a solid, credible foundation with no additional smart contract risk.
Networks
Purinta is multichain. It runs on Ethereum Mainnet and on Robinhood Chain. Each chain has its own set of markets, its own stablecoin as the borrow asset, and its own Purinta vault supplying liquidity.
| Network | Borrow asset | Vault |
|---|---|---|
| Ethereum Mainnet | USDC | Purinta USDC Vault |
| Robinhood Chain | USDG | Purinta USDG Vault |
You connect any EVM wallet, and Purinta prompts you to switch to a market's network at the right moment. Positions on one chain are fully independent of positions on another. For the full list, see Supported Markets.
Markets
Each meme token on Purinta has its own lending market. A market is defined by three parameters:
| Parameter | Description |
|---|---|
| Supply asset | The meme token you supply as collateral (e.g. PEPE, SPX, CASHCAT) |
| Borrow asset | A stablecoin - USDC on Ethereum Mainnet, USDG on Robinhood Chain |
| LLTV | Set per market - the maximum ratio of loan value to collateral value before liquidation |
Markets are fully independent. A position in one market has zero bearing on a position in another. This is important for users with diversified meme portfolios - a crash in one token does not affect your other positions.
Each market also has limits on how much collateral can be supplied to it and how much can be borrowed from it. Api3, as the curator, sets and adjusts these limits to keep each market within safe bounds as it grows. You don't need to track them yourself - the app only ever lets you supply or borrow up to what a market currently allows.
For the list of supported markets, see Supported Markets.
LLTV (Liquidation Loan-to-Value)
LLTV stands for Liquidation Loan-to-Value. It defines the maximum ratio between your borrowed amount and collateral value. If this threshold is reached, your position gets liquidated.
Example: You supply $100 worth of PEPE. With an LLTV of 62.5%, you could theoretically borrow up to $62.50 USDC. However, Purinta's UI caps this under the hood at 95% of the maximum (~$59.37) to give you a built-in safety buffer. The UI also warns you when your borrow is close to the liquidation threshold.
The Purinta UI intentionally avoids technical terms like LLTV or LTV (loan-to-value) that are commonly used in DeFi. Instead, the built-in safety buffer and position health convey this information in a more user-friendly way.
For more on how liquidation works, see Risk & Liquidation.
Interest
Borrowers pay a variable borrow rate that accrues continuously. The rate adapts based on how much of the market's supply is being borrowed - when demand for borrowing is high, the rate increases. When it's low, the rate decreases. The current rate for each market is displayed as an APY in your position details. As interest accrues, you'll see your stablecoin borrow amount gradually increase over time.
The Purinta Vaults
Liquidity for borrowers comes from the Purinta vaults, curated by Api3. Each chain has its own vault - the Purinta USDC Vault on Ethereum Mainnet and the Purinta USDG Vault on Robinhood Chain. Each is built on top of Morpho's vault infrastructure and distributes its deposits across the active meme token markets on that chain to ensure borrowers have access to liquidity.
On the supply side, lenders can supply stablecoins to earn yield from the interest paid by borrowers. The vault charges a performance fee, set by Api3 as the curator, that is taken from this interest before yield is distributed to suppliers. This is the only fee on Purinta - there is no separate protocol fee on borrowing beyond the variable interest rate, and no deposit, withdrawal, or repayment fees.
As a curator, Api3 is responsible for maintaining enough liquidity in the markets, keeping the APY on the markets and vault attractive for both borrowers and lenders. To learn more about the curation process, refer to the Api3 Curation docs.
Supplying to a vault
Supplying to the vaults from the Purinta app is not available yet, but will be supported soon. For now, you can supply directly through the Morpho app.
To supply and earn yield today, open the vault for the chain you want and deposit stablecoins. Your deposit is allocated across the active meme token markets on that chain and earns yield from the interest paid by borrowers. You can withdraw your supplied funds plus accrued yield at any time, subject to available liquidity in the markets.
- Ethereum Mainnet - supply USDC to the Purinta USDC Vault on Morpho.
- Robinhood Chain - supply USDG to the Purinta USDG Vault on Morpho.
Oracles
Purinta uses Api3 as its oracle infrastructure for price feeds. These oracles power real-time collateral valuations and liquidation triggers. A unique advantage of Api3's oracle system is OEV (Oracle Extractable Value) capture - value from liquidation events that would otherwise be lost to MEV bots is returned to the protocol, improving economics for all participants.