Kadia Lending
Supply an asset to its pool, or borrow it against your collateral. Your loan's health, liquidation price and what a price move would do are shown before you sign anything.
One pool per asset
- USE pool: borrow USE against ERG, SigUSD or a Rosen-bridged coin.
- ERG pool: borrow ERG against USE, SigUSD or a Rosen-bridged coin.
- rs-coin pools: borrow rsADA against USE, ERG or SigUSD. An rsBTC pool opens only after a go decision on its price feed. The rsETH, rsBNB and rsDOGE pools start closed and open once there's liquidity for them; rsFIRO comes later.
- LP market: borrow USE against Kadia DEX ERG/USE LP tokens, kept separate from the pools.
Pools never share losses with each other. Inside a pool, lenders share the risk of every collateral it accepts, up to a debt ceiling set for each one.
Rates
Rates are variable and shared by every borrower in a pool. 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 the price can move before then.
- A price-move 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, an old or flagged price feed, a busy pool.
Prices
Each asset has one price source per network, a Kadia oracle feed where there is one for it, and an older source otherwise. New loans pause while a feed is out of date or shows a warning; repaying and adding collateral always work. On testnet, tUSE is counted at $1, so loans backed by USE start with lower limits.
Pause and upgrade
A guardian group can pause new supply and new loans for up to 30 days at a time. An upgrade is announced 14 days before it takes effect, and upgrades end for good about two years after launch. Withdrawing, repaying and adding collateral never pause.
The refundable deposit
A loan backed by a token, not ERG, holds some ERG of your own in its loan box, because tokens can't pay Ergo's storage rent. In the LP market it's at least 1.2 ERG. It comes back when you close the loan, or when a liquidation closes it. 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 threshold for its collateral. A partial liquidation repays enough to bring it back to a safer level, and the liquidator earns a bonus from the collateral. When a loan is closed, what's left after the debt and the bonus comes back to the owner, unless it's too small to send on its own.
Status
Lending v1 isn't live. A test version of the earlier prototype's ERG market runs on Ergo testnet, but the public lending app isn't connected to it. It is unaudited, and no rates or yields are offered or implied. Mainnet comes later, for all of Kadia together, with no date set. See the roadmap and the lending guide.