Borrowers

Borrowers

Role and Function

• Accessing Capital: Borrowers can obtain loans by providing acceptable collateral, enabling them to leverage their assets for investment, trading, or liquidity needs without liquidating holdings.

• Flexible Interest Rates: Borrowers choose between variable rates, which adjust based on market conditions, and stable rates for predictable repayment planning. This flexibility allows borrowers to align their borrowing strategy with their financial goals.

Benefits

• Capital Efficiency: By leveraging assets as collateral, borrowers unlock liquidity without incurring taxable events associated with asset sales. This approach preserves their long-term investment positions.

• Negative Interest Rate Opportunities: In periods of excess liquidity, the protocol may offer negative interest rates to encourage borrowing. Borrowers can capitalize on these opportunities to reduce borrowing costs or even profit from holding borrowed assets.

• Advanced Risk Management: Borrowers benefit from the protocol's dynamic collateralization ratios and risk assessments, which can result in more favorable borrowing terms for lower-risk profiles.