Collateralized Loans

Users can deposit popular cryptocurrencies (BTC, ETH) as collateral to borrow base currencies like USDT and USDC.

To ensure loan security, all loans are overcollateralized. This means the value of the collateral exceeds the borrowed amount, mitigating the risk of price fluctuations.

The protocol includes an automated system to monitor the collateral value. If the value falls below a certain threshold, the collateral is liquidated to cover the loan, protecting both the borrower and the lender.