> For the complete documentation index, see [llms.txt](https://spree-finance.gitbook.io/spreefinance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://spree-finance.gitbook.io/spreefinance/products/sp-lending.md).

# SP Lending

### Borrow and Lend with Your SP

SP Lending connects SP holdings to DeFi lending markets powered by Morpho Blue. Four user journeys cover the most common use cases.

#### Lend SP to Earn Interest

Supply SP to a lending pool. Borrowers pay interest, and lenders earn on their SP position. Withdraw at any time with accumulated interest.

#### Borrow USDC Against SP

Deposit SP as collateral and borrow USDC. Use the USDC for purchases, other DeFi activity, or fiat off-ramps. No taxable sale of your SP. Repay the loan to unlock your collateral.

#### Borrow SP Against Crypto

Deposit ETH, WBTC, or other supported crypto as collateral and borrow SP. Protocols use this to acquire SP for reward distribution without selling treasury assets.

#### Reward-Subsidized Paydown

The most powerful flow. A user borrows USDC against SP, spends it at a merchant, and earns pSP rewards from the campaign. Those rewards settle to SP and pay down the loan balance. A 10% merchant reward on an $80 borrow covers over 2 years of interest at 5% APY.

### Available Markets

| Market     | Collateral | Loan | Status              |
| ---------- | ---------- | ---- | ------------------- |
| SP to USDC | SP         | USDC | Live (Base Sepolia) |
| USDC to SP | USDC       | SP   | Live (Base Sepolia) |
| ETH to SP  | WETH       | SP   | Planned             |
| BTC to SP  | WBTC       | SP   | Planned             |

### Why SP Lending?

* **Tax-advantaged spending.** Borrow against holdings instead of selling. No taxable event.
* **Reward-subsidized loans.** Merchant cashback offsets borrowing costs, approaching 0% effective APR in active spending scenarios.
* **Protocol treasury utility.** Borrow SP for reward distribution without selling native tokens.
* **Earn on idle SP.** Earn interest from borrowers without leaving the Spree ecosystem.

For technical integration details and contract addresses, see the [Developer Guides](/spreefinance/developer-guides/stable-points-sp.md).