40acres v2 FAQ
Our founder Chris answers all your questions about 40acres recent upgrade
There has been a lot of questions over the past week with the upgrade to 40acres v2. Today we are taking the time to answer the most commonly asked questions.
What is 40 Acres v2?
40 Acres is a DeFi lending protocol that enables holders of yield-bearing assets to access instant liquidity through self repaying interest free loans.
What is new in V2?
40acres V2 rebuilds the protocol around Portfolio Accounts(PA).
What is a Portfolio Account?
A Portfolio Account is a smart contract that belongs exclusively to each user, scoped to a single strategy (e.g., veAero borrowing). The protocol continuously monitors your account and takes the correct action based on what it finds:
Unclaimed rewards → claimed automatically
Non-USDC tokens → swapped to USDC automatically
USDC present → applied to repay your loan automatically
Think of it as a self-managing account, any asset that arrives triggers the appropriate protocol action without any manual steps.
Borrowing & Lending
How do loans work in V2?
Every loan in V2 is structured as a flash loan under the hood. Meaning the system checks that your end-state is valid before the transaction completes. This is a safety mechanism. It allows complex multi-step actions (like borrowing, buying an asset, and adding it as collateral in one transaction) while ensuring you always end in a valid position. AKA leveraged buyouts!
What collateral types are supported in V2?
Holders of veAERO veVELO, veBlack will all be upgraded to v2 over time. We will prioritize veVELO and veAERO holders.
Additionally, the Portfolio Account architecture is designed to expand support to any asset that generates yield.
How much can I borrow against my collateral?
The borrow limit is calculated the same way as V1: forecasted fees × epoch multiplier × your asset balance.
Can I still repay my loan early?
Yes. You can repay at any time with no lock-in periods or penalties. In V2, repayment can also happen automatically if USDC lands in your Portfolio Account from any source, it is immediately applied to your outstanding loan.
Can I be liquidated?
No. Loans are underwritten based on the expected revenue generated by your veNFT, not its market price. Your position remains secure through market volatility. There is no liquidation on 40 Acres for veNFT markets.
Miscellaneous
Does V2 support multiple Portfolio Accounts?
Yes. You can hold multiple Portfolio Accounts across different strategies. These accounts can work together for example, coordinating borrows across accounts in a single transaction, or routing yield from one strategy to automatically fund another.
Does V2 work across multiple chains?
Yes. Portfolio Accounts are deployed deterministically, meaning your account address is the same across supported networks. If USDC is detected in your account on another chain, the protocol can bridge it to the appropriate chain to repay debt or send to a wallet of your choosing.
Is 40 Acres audited?
Yes. 40 Acres v2 has been audited two times by Sherlock Wardens and Octane Ai. The protocol has had a total of 6 audits to date.
If you have more questions or need more clarification feel free to reach out to the team in Discord.
Cheers,
Chris