Borrow instead of sell

For: any app whose users hold assets.

The problem

People who need cash often have to sell what they hold, and lose whatever that holding would have earned.

How it works

1. The user locks part of what they hold as collateral.

2. The Credit Engine lends them cash against it.

3. They repay to unlock the collateral. Meanwhile, their holding keeps working.

Modules used

Credit, Conversion.

Things to know

• If the value of the collateral falls or a loan is not repaid on time, the collateral can be claimed under the loan's terms.

• Borrowing costs money. Rates will be published with the module.

Status

In development. The first form, borrowing USDC against wzdUSD, is built and switched off.