FAQs

Liquid Loans is a powerful, community driven, and truly-decentralized lending protocol live on PulseChain and Base.

It allows you to access 0% interest-free loans using Ethereum (ETH) as collateral.

Loans are paid out in USDL – a USD value pegged stablecoin – with a minimum collateral ratio required for a loan of 110%.
The repayment schedule is timeless.

Loans are secured by a Stability Pool containing USDL and by fellow borrowers collectively acting as guarantors of last resort.

Liquid Loans as a protocol is a non-custodial, immutable, and governance-free lending protocol. The protocol is a finished product with no admin keys.

The Liquid Loans protocol was developed to give owners of ETH a method of extracting value from their holdings, without the need to ever sell.

By locking up ETH and minting USDL, an ETH holder can take a 0% interest-free loan against their holdings with no repayment deadline.

The protocol smart contract code is completely immutable and therefore has no owner or operator. There are no admin keys, and nobody can alter the rules of the system in any way once deployed.

USDL is the USD value pegged stablecoin used to pay out loans on the protocol. It is a native stablecoin that aims to always be worth one US dollar and at any time it can be redeemed against the underlying collateral at face value.

LOAN captures the fee revenue that is generated by the system and incentivizes early adopters. You earn LOAN by providing USDL stablecoin to the Stability Pool in exchange for rewards. You can also stake your LOAN tokens to earn the revenue paid for borrowing or redeeming USDL.

110% MCR – a low Minimum Collateral Ratio means more efficient usage of your deposited ETH.

Governance free – all operations are algorithmic and fully automated, and protocol parameters are set at time of deployment

Directly redeemable – the protocol allows you to exchange 1 USDL stablecoin for USD $1 worth of ETH at any time.

Fully decentralized – the contracts have no admin keys and can be accessible via other front ends, making it censorship resistant

BORROW
As a borrower, you can take a loan against your existing ETH. To do this, you deposit your ETH into a contract called a Vault, which in turn mints the USDL stablecoin. Use your USDL for a variety of personal uses, or reinvest into the system to provide stability and take advantage of another journey on the ecosystem.

EARN
As a holder of USDL, you can earn income by providing stability to the Liquid Loans ecosystem. Invest and achieve a return on your USDL using gains earned through liquidation events plus incentives provided in the form of LOAN tokens.

STAKE
As a holder of LOAN, these tokens can be staked for rewards. Earnings are generated from the borrowing and redemption fees, and are provided in the same proportion as the amount you have staked in the staking pool.

REDEEM
To redeem ETH, you simply provide the appropriate amount of USDL. The protocol allows you to exchange 1 USDL stablecoin for USD $1 worth of ETH.

There is a one-off fee whenever you borrow and redeem using the system. Fee range is between 0.5% and 5.0% depending on demand for loans.

Loans issued by the protocol are timeless, and have no repayment schedule. You can leave your Vault open and repay your debt at any time, as long as you maintain a minimum collateral ratio of at least 110%.

Yes, after a long and meticulous development process, Liquid Loans just launched on Base! And it’s been live on the PulseChain mainnet for two years. You can access both versions of the protocol here. here.

You can also test all the features and benefits of the protocol in a free and safe environment on the testnet.