Lending

Supply USDG and earn interest from borrowers. Or post vault shares as collateral and borrow USDG while the vault keeps earning. Every loan shows its health factor and its liquidation price.

Two sides

Supply

Deposit USDG into the lending market and receive an interest-bearing balance. Interest is paid by borrowers and accrues continuously. There is no lock-up; withdrawals are limited only by the market’s available liquidity at that moment.

Borrow

Post eligible vault shares as collateral and borrow USDG against them. The vault position keeps providing liquidity and keeps earning while it is collateral. Borrowing is what makes the Looped strategy possible.

Interest rate

The borrow rate follows utilisation: the share of supplied USDG that is currently borrowed. Low utilisation means a low rate to attract borrowers; utilisation above a kink raises the rate steeply to attract suppliers and protect withdrawals. Suppliers receive the borrow interest minus the protocol’s reserve share.

Collateral and health factor

Each vault has a collateral factor, the share of its value you can borrow against, and a liquidation threshold, slightly higher. Your health factor is:

health = (collateral value × liquidation threshold) ÷ debt

Above 1.00 the loan is safe. At 1.00 it can be liquidated. Collateral value uses the vault share price, which uses the Chainlink feed for the stock, so it moves with the stock and with fees earned.

Liquidation

If health falls to 1.00, anyone can repay part of the debt and receive collateral at a discount (the liquidation penalty). The penalty is what you lose beyond the price move. Liquidations are partial by default, closing only enough to bring health back above a target.

Because stock tokens trade while the exchange is closed, we show liquidation distance as a percentage move in the stock, not as a health number alone. That is the number to watch before an open or an earnings print.

Oracle behaviour

Chainlink’s Robinhood Tokenized Equity feeds update on a 0.5% deviation or a 24-hour heartbeat. If a feed is stale beyond its heartbeat, liquidations on that market pause and new borrows against it are blocked until it updates. This protects borrowers from being liquidated on a price nobody can verify.

Eligible collateral

Only vaults in liquid markets are eligible, and each has its own factors. Baskets are eligible with a blended factor. The list and the factors are shown in the app and will be published here.