Kadia Lending
Borrow DexyUSD (USE) against ERG or against Kadia DEX LP tokens, or supply USE to the pool. Your loan's health, liquidation price and what a price drop would do are shown before you sign anything.
Two isolated markets
- ERG → USE: collateral is ERG, valued with the ERG/USD oracle pool.
- ERG/USE LP → USE: collateral is Kadia DEX ERG/USE LP tokens, valued at the pool's fair reserves as they stood at the start of the block, so a same-block donation can't inflate them.
Each market has its own lenders, rates and losses. Nothing is shared between them.
Rates
Rates are variable and shared by every borrower in a market. They adapt to utilization around a target, so borrowing gets more expensive when the pool runs short and cheaper when it doesn't. Lenders hold pool shares whose value grows as interest accrues. A reserve takes losses first; there is no insurance beyond it.
Before you borrow
- Loan-to-value, the price at which liquidation becomes possible, and how far ERG can fall before then.
- A price-drop simulator. LP collateral moves with the square root of the price, so it's shown that way.
- Every refusal in plain words, before you sign: above the maximum loan-to-value, a stale price feed, a busy pool.
The refundable deposit (LP loans)
Every LP loan holds at least 1.2 ERG of your own ERG in its position box, because LP tokens can't pay Ergo's storage rent. It comes back when you close the loan, or when a liquidation closes it. A partial liquidation leaves it in the open loan. It isn't collateral, it isn't a fee, and it doesn't count toward loan-to-value.
Liquidation
Anyone may liquidate a loan once its loan-to-value reaches the market's threshold. A partial liquidation repays enough to bring it back to a safer level, and the liquidator earns a bonus from the collateral. The numbers are fixed per market and shown on every market page.
Status
The contracts are in review and nothing is deployed. No rates or yields are offered or implied, and no release date is set. See the roadmap and the docs.