Three kinds of money
Sale proceeds, interest and borrowed funds aren't the same.
Orlo keeps them apart in every view so you always know whether money came from selling, from lending, or from a loan.
- Sale proceeds
- Money you get by selling part of a holding. You own fewer Stock Tokens afterwards.
- Example: you sell 2 AAPL at $250.00 and receive about 500 USDG before fees. You now hold 2 fewer AAPL.
- Interest
- What a vault pays for the USDG you deposit. The Orlo test vault pays a fixed rate. Morpho vaults on mainnet pay a variable rate that moves with borrowing demand.
- Example: 1,000 USDG at a 4% yearly rate earns about 3.33 USDG in a month while the rate holds.
- Borrowed funds
- USDG you borrow against collateral. It's debt you have to repay, and it's never counted as income.
- Example: you borrow 1,000 USDG. Your wallet shows 1,000 more USDG and your debt goes up by 1,000 USDG plus interest. Orlo subtracts the debt from your total.