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Robinhood Chain
banked/Docs/Basics/Borrowing

Borrowing

Deposit a coin, borrow USDG against it, repay any time, take the coin back.

The four steps

  1. Deposit. Open a coin's market page and put some of it in. The bank credits exactly what arrives.
  2. Borrow. Take up to 20% of a memecoin bag's value, 70% of an index ETF or mega-cap stock, or 50% of a volatile stock. The quote on the page is the most you can take right now.
  3. Repay. Pay USDG back whenever you like, a little or all of it. Interest is included in the debt you see. "Repay all" clears the loan exactly.
  4. Withdraw. Take your coins back out. With a loan open you can withdraw as long as the health factor stays above 1.0; the page's Max leaves it at 1.5.

Nothing locks you in. There is no term, no minimum time, and no penalty for repaying early.

Interest

Interest accrues every second and is added to your debt. The rate depends on how much of the coin's pot is lent out; see Interest rates. The debt shown on your dashboard always includes the interest so far.

The max-borrow quote

The quote is the smallest of four numbers. The page tells you which one is binding, in words:

  • Limited by your collateral. The share of your bag's value the bank lends. Deposit more to borrow more.
  • This coin's cap is nearly full. The bank lends at most 10% of a coin's pool across everyone. Room opens as others repay.
  • Your wallet cap. One wallet can borrow at most 5% of a coin's pool.
  • Not enough USDG lent right now. The pot is short. If the treasury float has USDG idle, the page asks it to move some in and turns the button on when it arrives; otherwise you can lend into the coin yourself or wait for a repayment.

Refresh price

The bank lends against the coin's price at the end of an earlier block, never the current one. A price that only existed for one transaction is never lent against.

For some coins the bank has to see that earlier price first. When it has not yet, the borrow page shows a Refresh price button. Press it, wait one block, and the quote appears. Nothing else changes.

Good habits

  • Borrow less than the maximum. The quote is a ceiling, not a target.
  • Watch the health factor on your dashboard. The page tells you how far the market cap can fall before the coin reaches the line.
  • If the coin drops, repay a little or add more of it. The dashboard shows the amount that brings you back to 1.5.