Loans can be opened or managed on any supported interface
How Lending Works
Borrow against your native assets, receive as USD-denominated debt
Collateral is provided as Layer 1 assets and debt is denominated in TOR - THORChain's internal censor-resistant stablecoin oracle. Debt can be paid back as any asset, as long as it's greater than the debt value. Loans can't be partially repaid.
Built In Protections
Lending uses virtual pool depths to make swaps between collateral and debt. Virtual pool depths constrict during times of high volatility to protect the network against price manipulation. The best time to take out or pay back a loan is during times of low volatility.
THORChain loans are overcollateralized - users receive their debt based on the collateral amount and the current collateralization ratio for that asset. As more loans are taken out respective to a pool's depth, the Collateralization Ratio also grows