# DeFi Lending Infrastructure Normal doesn't build its own lending or yield optimization software. Instead, we integrate with two of the most established protocols on Stellar: DeFindex for yield optimization and Blend Capital for lending. This approach lets us deliver competitive yields without taking on the risk of writing custom financial infrastructure. #### **Why Integrate Instead of Build** Building custody, lending, and yield optimization from scratch is expensive, slow, and risky. Smart contract bugs in DeFi have caused some of the largest losses in crypto history. By integrating with DeFindex and Blend, Normal benefits from: * Smart contracts that have been deployed, tested, and audited at scale * Years of accumulated security work and bug fixes * Established teams continuously maintaining the infrastructure * Composability with the broader Stellar DeFi ecosystem You get the yield. We handle the integration. Established protocols handle the heavy lifting. #### **DeFindex (Yield Optimization)** [DeFindex](https://defindex.io) is Stellar's leading yield-optimization protocol, built by Palta Labs. When you supply USDC to Normal, your funds go into a DeFindex vault that handles the actual yield generation strategy. **What DeFindex does:** * Routes capital into the optimal lending pool * Harvests rewards (interest plus BLND incentives) automatically * Reinvests earnings to compound your yield * Manages the strategy on-chain through audited Soroban smart contracts When you supply USDC, you receive vault tokens that represent your share of the pool. As yield accrues, the value of your tokens grows. When you withdraw, you redeem those tokens for your original USDC plus everything you've earned. #### **Blend Capital (Lending)** [Blend Capital](https://blend.capital) is Stellar's leading decentralized lending protocol. The DeFindex vault deposits Normal users' USDC into Blend's Fixed lending pool, where borrowers pay interest to lenders. **How Blend protects your funds:** * **Over-collateralization:** Borrowers must post collateral worth more than they borrow * **Automatic liquidations:** Under-collateralized positions are liquidated to repay lenders before losses can occur * **Backstop reserves:** A first-loss capital pool absorbs any defaults before they reach you * **Isolated pools:** Each lending pool operates independently, so risk in one pool can't affect others Your role in this system is purely as a lender. You earn the interest that borrowers pay. Normal does not borrow on your behalf, and your funds are never used as collateral for someone else's loan. #### **How They Work Together** The layers stack to deliver yield without complexity: 1. You supply USDC into your Normal savings account 2. The funds flow into a DeFindex vault 3. The vault routes capital into Blend's Fixed lending pool 4. Borrowers pay interest into the pool 5. DeFindex harvests rewards and compounds them automatically 6. Your balance grows over time 7. You withdraw anytime, straight back to your wallet Each layer is non-custodial. Each layer is audited. Each layer is verifiable on-chain. #### **Why This Matters for You** * **Higher yields:** DeFindex actively manages the strategy so you don't have to * **Lower risk:** Established protocols replace untested in-house code * **Full transparency:** Every contract address and every transaction is public * **No lock-ups:** Withdraw anytime, regardless of how the underlying pool is performing Normal's job is to make this experience feel as simple as opening a savings account. The infrastructure underneath is sophisticated, but you don't need to think about any of it. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://normalfi.gitbook.io/normal/getting-started/protocol-and-security/defi-lending-infrastructure.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.