> For the complete documentation index, see [llms.txt](https://docs.liminal.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.liminal.money/liminal-cash/how-does-it-work.md).

# How Does It Work

Liminal Cash sits between an application’s USDC deposit flow and xLEND.

When a user deposits USDC through an integrated application, the application can route that idle capital into xLEND instead of leaving it inactive. The user does not need to manually interact with xLEND directly. The integration handles the flow, while the Liminal Cash contracts provide the per-user account structure and redemption logic.

The core idea is simple:

1. A user deposits USDC into an application.
2. The application routes the productive portion of that USDC into xLEND.
3. A dedicated Cash Account is used for that user and that xLEND share token.
4. The Cash Account holds the user’s xLEND shares.
5. When liquidity is needed, the position can be redeemed back into USDC.
6. Redeemed USDC can be routed back to the user’s HyperCore destination.

Each Cash Account is deterministic. This means the account address can be predicted before it is deployed. The factory derives the account from the user address and the xLEND share token, so the same user and same share token always map to the same Cash Account.

This gives integrators a clean accounting model. Instead of all users being merged into one app-owned balance, each depositor has a distinct on-chain account that holds their own xLEND shares.

### Cash Accounts

A Cash Account is a minimal smart-contract account deployed by the Liminal Cash Factory.

Its role is to hold xLEND shares for one depositor and allow approved redemption flows to be executed. The account records:

* The factory that deployed it
* The user it belongs to
* The xLEND share token it holds

This structure matters because it avoids treating the application’s treasury as the custody layer for all user funds. The user’s productive balance is represented by shares held in a user-specific account.

### Keeper Execution

Liminal Cash uses a keeper to execute operational actions such as redemption.

The keeper is not designed to custody user funds. Its role is to trigger approved flows through the Cash Account. For example, when USDC needs to be returned, the keeper can call the redemption function, but the redeemed USDC is routed through the configured flow rather than being paid to the keeper.

This makes the keeper an execution actor, not the owner of the user’s position.

### xLEND as the Yield Source

The yield source behind Liminal Cash is xLEND.

When idle USDC is put to work, the position is represented through xLEND shares. As xLEND accrues yield, the value of the user’s position can increase according to the performance of the underlying strategy.

Liminal Cash does not create the yield itself. It gives applications a clean way to embed xLEND into their own USDC deposit experience.