Liquid Loans: 0% Interest Free Liquidity on PulseChain

  • 0% interest rate
  • A minimum collateral ratio of just 110%
  • No maximum collateral ratio
  • Governance free — Smart contract operations are algorithmic and fully automated
  • Directly redeemable — USDL can be redeemed at face value for the underlying collateral, always and at any time.
  • Censorship resistant — The contract is immutable and has no owner.
  • What will cause a liquidation event? If your Vault falls below the minimum threshold collateralisation level of 110% your Vault will be liquidated by what is know as the stability pool providers, this pool is another function of the protocol where providers of USDL into a pool to prop the system up have the option to manually liquidate any Vault that has come up as eligible for liquidation after falling below the 110% ratio. (Note: The borrower has already extracted the dollar value in USDL at the beginning and effectively has lost nothing)
  • What if PLS appreciates in value, do you only still have to pay back your original value to retrieve your PLS ? If your PLS has risen in value and in doing so raised your collaterlisation level and overall value of your Vault, only the original amount of USDL you received is required to be returned in order to unlock that PLS. Since your collateral level has now increased, you are also entitled to withdraw anything extra above your original agreement as long as you maintain your original collaterlisation level.
  • When will this protocol launch? It is expected to launch shortly after Pulsechain main net launch, however, the Liquid Loans team are advising that the exact launch will be decided upon and monitored, as the opening price of PLS coin will have volatility and in that environment it would have the potential to cause user liquidation events which is not what the Liquid Loans team desire to see on launch.
  • For more Frequently Asked Questions about Liquid Loans, click here.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store