3️⃣ Lending & Borrowing

Fuul allows projects to incentivize both lenders and borrowers, giving you the flexibility to reward the specific behavior that matters most for your protocol.

What You Can Incentivize

Side	What's tracked	Example use case
Lending (supply)	Amount supplied relative to total pool deposits	Grow TVL by rewarding depositors
Borrowing	Amount borrowed relative to total pool borrows	Drive utilization by rewarding borrowers

How Fuul Tracks Positions

Fuul supports two approaches for fetching lending and borrowing data:

• Receipt / debt tokens — track the balance of protocol-issued tokens (e.g., aTokens, cTokens) that represent a user's supply or borrow position

• Subgraph queries — fetch positions directly from a protocol's subgraph for real-time on-chain balance tracking

Both methods calculate each user's share of the total pool, ensuring proportional and accurate reward distribution.

Supported protocols

Protocol	Type	How positions are tracked
Compound V3	Lending	Receipt/debt token balances
Morpho	Lending	Receipt/debt token balances
Morpho Vaults	Curated vaults	Subgraph query (supply positions in curated vault structures)
Euler Vaults	Curated vaults	Subgraph query (supply positions in curated vault structures)
Euler V2 Looping	Looping (lending + borrowing)	Subgraph query (looped supply/borrow positions across Euler V2 vaults)

Morpho Vaults and Euler Vaults are curated vault structures, distinct from direct lending pools. Fuul tracks user supply positions via subgraph queries rather than receipt tokens. Euler V2 Looping extends this by tracking looped supply and borrow positions within Euler V2 vaults.

Why Use Fuul for Lending & Borrowing?

• Target supply or demand — choose whether to incentivize lenders, borrowers, or both

• Accurate on-chain data — positions are fetched directly from the blockchain or subgraphs

• Works with major protocols — native integrations for Compound V3, Morpho, and others