THORChain announced the launch of a lending function with no interest, no liquidation, and no expiration date. Users can use this lending service through THORSwap or Lends.
THORChain lending currently supports using Bitcoin or Ethereum as collateral, and will add all THORChain-supported Layer1 gas assets. Loans are collateralized between 200% and 500%, and debt is denominated in the USD equivalent of $TOR, a USD stablecoin that cannot currently be held or traded and is used only as a pricing tool for debt in lending services. The minimum loan term is 30 days, and users can repay the debt and recover the collateral at any time after 30 days, and can repay partially, but the collateral will not be released until the debt is fully repaid. Any THORChain-supported asset can be used to repay the debt.
The lending function of THORChain has a loan cap of 500 million $RUNE. The team said that the lending function may currently have errors and vulnerabilities, which may require pausing the blockchain and repairing. Node operators and developers will have to remain vigilant for some time to come.
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