Borrow
An explanation of how users can borrow using their tokens, NFTs, or RWAs as collateral across multiple chains.
Borrowing with Nouns Protocol is designed to provide users with quick and seamless access to liquidity without the need to sell their digital assets. Whether you're looking to leverage your tokens, NFTs, or real-world assets (RWAs), Nouns Protocol offers flexible borrowing options tailored to your needs.
How Borrowing Works
- Select Your Collateral: Choose from a range of supported assets, including tokens, NFTs, and RWAs, to collateralize your loan. The value of the collateral determines how much you can borrow.
- Choose Borrowing Duration: Customize your loan terms by selecting the borrow duration that best fits your financial goals.
- Receive Funds: Once collateral is deposited, you can borrow assets across supported chains. Use the borrowed funds as you need while keeping your collateral intact.
- Repay and Unlock: Repay the borrowed amount along with the interest, and your collateral will be fully unlocked for withdrawal.
Supported Assets for Collateral
Nouns Protocol supports a wide variety of tokens, NFTs, and RWAs as collateral, making borrowing flexible and accessible to all users. Below are the supported assets across different chains:
- Ethereum: ETH, USDT, USDC, weETH, WBTC, LINK, EURC, cbETH, LUSD
- Base: ETH, USDC, weETH, cbETH, USDbC, EURC
- Arbitrum: ETH, USDC, WBTC, weETH, LINK, ARB, DAI
- Avalanche: BTC.b, USDC, AVAX, USDT, sAVAX, DAI.e, LINK.e, WETH.e, EURC
- Optimism: ETH, wstETH, WBTC, USDT, USDC, OP, sUSD, DAI, LINK
- Polygon: WETH, WBTC, USDT, USDC, MATIC, wstETH, stMATIC, DAI, LINK
- BNB Chain: ETH, BTCB, USDT, USDC, BNB
Loan-to-Value (LTV) and Risk Management
Each collateral type has a specific loan-to-value (LTV) ratio, which determines how much you can borrow relative to the value of your collateral. For example, more stable assets like USDC may offer higher LTVs, while more volatile assets such as NFTs or RWAs may have lower LTVs to manage risk.
Nouns Protocol incorporates sophisticated risk management strategies to ensure the safety of both lenders and borrowers. This includes real-time collateral monitoring, liquidation mechanisms, and dynamic interest rates based on market conditions and asset volatility. Users can also monitor their collateral's health and manage the risk of liquidation by repaying or adding more collateral when necessary.
With Nouns Protocol, borrowing is not only flexible but also secure, offering users the tools they need to make informed financial decisions while leveraging their assets effectively.