What Affects Portfolio Returns on 8lends

A 19–25% rate is only the start — diversification, defaults and idle capital quietly reshape what your 8lends portfolio actually earns.

The actual return on an investor's portfolio on 8lends is determined by seven key factors: the average rate across projects (19–25%), diversification across loans, the presence of defaults, the use of Buyback projects, effective collateral realization in the event of default, the use of bonuses (First Investment, Proof of Loan, referrals), and the idle time of capital between investments. The platform's track record — 0 defaults since its launch on March 3, 2025 — is a baseline, but not a guaranteed backdrop. Real portfolio returns are made up of the combination of these factors.

Seven Factors Affecting Returns

Factor	How it affects returns
1. Average rate across projects	The higher the rate — the greater the potential income (but also the risk)
2. Diversification	Protects against losses if a single project defaults
3. Borrower defaults	Reduce returns on a specific loan
4. Use of Buyback	Reduces losses in the event of default on individual projects
5. Collateral realization	In the event of default, determines how much is recovered
6. Bonuses	Provide an additional +4% in 8LNDS and a $30 starter bonus
7. Capital idle time	Capital not working in projects generates no income

Average rate across projects

The rate on 8lends is a fixed 19–25% per annum in USDC per project. The higher the rate, the higher the income, but also the higher the risk.

Projects with an AAA–A rating — rate closer to 19%, minimal risk
Projects with a BBB–BB rating — rate in the middle of the range
Projects with a B–CCC rating — rate closer to 25%, elevated risk

Strategy: either focus on stability (lower risk + lower returns) or on returns (elevated risk). A balanced portfolio combines both.

Diversification

Diversification is the main risk management tool. If all capital is in a single project and the borrower defaults, potential losses are maximal. If capital is spread across 10–20 projects, a loss in one is part of the portfolio, not the entire portfolio.

Portfolio size	Recommended number of projects
Up to $1,000	1–3 projects (at the start — priority on gaining experience)
$1,000–10,000	5–10 projects
$10,000+	10–20+ projects

Borrower defaults

A default (overdue by more than 60 days, → What Happens if a Borrower Defaults on 8lends?) reduces returns on a specific loan. On 8lends' track record — 0 defaults since launch. This is not a guarantee of future results: defaults in RWA lending are always possible.

In the event of default on a standard project, Maclear AG's collateral realization is triggered — this takes 1–12 months. On projects with Buyback, the position is bought out without waiting for collateral realization.

Use of Buyback Projects

Buyback is a protection mechanism available on individual projects. Under the program's terms, a partner buys out the investor's position in the event of default and returns the loan principal in full without waiting for collateral realization.

Including Buyback projects in a portfolio:

Reduces potential losses in the event of default
Usually provides a slightly lower rate (the cost of protection)
Reduces the time capital is "frozen" in default situations

Efficiency of Collateral Realization

On projects without Buyback, in the event of default, Maclear AG realizes the collateral. How much is recovered for the investor depends on the efficiency of this process:

Full realization — investors receive the principal and accrued interest
Partial realization — recovery proportional to the proceeds from the sale of the collateral
Timing — 1–12 months, during which capital is frozen

This is a factor beyond the investor's control, but the quality of Maclear AG's due diligence (≤10% of applications pass screening) is aimed at minimizing such situations.

Use of Bonuses

8lends offers several mechanics for additional returns:

First Investment Bonus — $30 USDC for the first investment of 100 USDC or more
Proof of Loan — 4% of the amount of each investment in 8LNDS tokens
Referral program — bonuses for invited investors

These bonuses do not change the base rate of 19–25%, but add on top. They are especially significant for new investors with a small starting capital.

⚠️ Returns from 8LNDS tokens depend on the market price and are not guaranteed.

Capital idle time

Between the completion of one project and investing in the next, capital is not working. The more idle time — the lower the portfolio's annual return.

Ways to minimize idle time:

Regularly check for new projects on the platform
Use the Secondary Market to enter existing projects if the primary market is empty
Reinvest received interest into new projects (while auto-reinvest is on the roadmap — this is done manually)

Example of a Realistic Return Calculation

A portfolio of 5,000 USDC for a year, spread across 10 projects of 500 USDC each:

Base average rate: 22% × 5,000 = 1,100 USDC of interest per year
Scenario with one partial default (60% principal recovery from 500 USDC): -200 USDC in losses
First Investment Bonus: +$30 USDC (if this is the first investment)
Proof of Loan: +4% × 5,000 = 200 USDC in 8LNDS (market price varies)
Total in USDC: 1,100 − 200 + 30 = 930 USDC of net income (~18.6% per annum)
Plus 200 USDC equivalent in 8LNDS — separate, depends on the token price

This is an illustrative example, not a forecast. Actual results depend on the specific composition of the portfolio and the behavior of borrowers.

Frequently Asked Questions

Is the 19–25% annual return guaranteed? No. 19–25% is the loan rate assuming full and timely repayment. Real portfolio returns depend on borrowers fulfilling their obligations, diversification, defaults, the use of Buyback, and other factors from this article.

Which is more important — a high rate or low risk? It depends on your goals. A young portfolio focused on gaining experience often benefits from balance (BBB–A projects with a medium rate). An experienced investor can afford more elevated risk, diversifying it across a large number of projects.

How do I calculate realistic returns taking defaults into account? The basic formula: (average rate × amount) − (probability of default × average losses in the event of default × amount). On 8lends' track record there have been no defaults yet, but models should build in a conservative estimate (for example, 1–5% defaults per year for projects not covered by Buyback).

What reduces returns the most? By impact: (1) default without full collateral realization, (2) prolonged capital idle time between projects, (3) concentration in a single project that defaults. The least impactful are small fluctuations in rates or temporary delays of up to 60 days.

How should I account for 8LNDS tokens in overall portfolio returns? 8LNDS is a separate category with its own risk and volatility. It is recommended to account for them separately from USDC returns, without mixing them into a single metric. USDC returns are fixed and predictable; the value of 8LNDS depends on the market.

Do taxes affect real returns? Yes, and significantly. The tax rate on income from P2B lending depends on jurisdiction and can range from 15% to 50%+. When calculating real returns after taxes, use a crypto tax service or a tax advisor.

Should I keep cash for new projects or invest everything at once? This is a trade-off between minimizing capital idle time and being ready for attractive new projects. Full investment maximizes returns but reduces flexibility. Many investors keep 5–15% in cash in case of new good opportunities.