Lends
  • 📚User Documentation
  • 🚨Read Me First
  • Products
    • ⏳L-1 Streaming Swaps
      • ⏩Can I speed up my swap execution?
      • 🌟Why are Streaming Swaps better than regular swaps?
    • ♻️THORFi Lending
      • 🔄What collateral can I use to take out a loan?
      • 🚦Is there unlimited lending capacity?
      • 📑How are stablecoin loans accounted?
    • 🤑THORFi Savers
      • 🔰Where does the yield come from?
      • 🔴Is there any risk of losing my coins?
    • 💧Liquidity
      • 👨‍🏫How are fees calculated for liquidity transactions?
      • ➡️Impermanent Loss Protection (ILP)?
      • 🤷‍♂️Difference between symmetric and asymmetric deposits?
    • 🤝P2P Lending
      • 💧Liquidity Provider
      • ⚖️Leverage Taker
      • 💹Key Features
      • 🔮Oracle
      • 🛡️Managing Liquidations
      • ❓FAQs
  • tokenomics
    • 🪙Token Distribution
    • 💸Revenue Model
    • 🚀Value Accrual
    • 🗺️Product Roadmap
  • EXTRAS
    • 🎉Ambassador Program
    • 🔥Community
    • 🎨Brand Assets
    • 🖐️Terms of Service
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On this page
  • Introduction
  • Key Benefits
  • How it Works
  • Lending Process
  1. Products

THORFi Lending

Introduction

Lends offers a revolutionary lending experience with:

  • 0% interest rates

  • No liquidations

  • No expiration dates

This is achieved through an innovative model based on overcollateralization and burning instead of interest accrual.

Key Benefits

  • Stress-free borrowing: No worrying about fluctuating rates, margin calls or repayment deadlines

  • Long crypto exposure: Go long on BTC and other assets without having to sell them

  • Supporting network growth: Attracts capital to boost Collateralization Ratio and system stability

How it Works

Loans are overcollateralized, with the difference in value between collateral and loan burnt as RUNE. This increases the ratio of collateral to debt over time, making the system more resilient.

Safety mechanisms like throttling and caps avoid overleveraging while allowing measured growth. As more RUNE is burnt, additional loans can be opened.

Lending Process

  1. User deposits native coins as collateral

  2. Debt issued in stablecoins based on collateral value and CR

  3. Loans can be held indefinitely or repaid any time

  4. Repayments burn debt and redeem collateral

With no liquidations, interest or expiration dates, Lends delivers the simplest and most flexible borrowing experience in DeFi. This encourages capital inflows while aligning network incentives for stability.

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Last updated 10 months ago

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