Lending (planned)
How loans will work
An EQTY loan is planned to be simple: you deposit wrapped xStocks as collateral on Elysium, you borrow USDC against them, interest accrues on what you owe, and you repay whenever you like. No term, no schedule.
Collateral
Collateral is the wrapped xStocks you deposit. You will be able to deposit several into one loan; together they back your debt. While deposited, they keep tracking their share price — you keep the upside and the downside.
Loan-to-value
Loan-to-value (LTV) is what you owe divided by what your collateral is worth.
LTV = debt ÷ collateral value
Deposit $10,000 of wSPYx and borrow $3,000 of USDC, and your LTV is 30%. If wSPYx rises, your LTV falls. If it drops, your LTV rises.
Two limits per asset
Every collateral asset has two planned numbers, listed on Supported collateral:
- Max LTV — the most you can borrow against it. A borrow or withdrawal that would take your loan above this is refused.
- Liquidation LTV — the point at which the loan can be liquidated. It is always higher than the max LTV; the gap is your buffer.
With several assets, your loan’s limits are the value-weighted blend of each asset’s limits.
Borrow limit = Σ (collateral value × max LTV)
Available to borrow is the borrow limit minus what you already owe.
Interest
You pay an annual rate on your USDC debt. The planned launch rate is 6.8% APR. Interest is added to your debt as it accrues; there are no payments to make while the loan is open.
Each borrow is planned to carry a one-time EQTY fee of 0.5% of the amount. See Fees and rates.
Repaying
Repay any amount at any time. Repaying lowers your LTV and pushes your liquidation price down.
Withdrawing
You can withdraw collateral whenever the loan stays within its max LTV afterwards. With no debt, you can withdraw everything.
Before launch
The lending contracts will be audited, and the reports published, before lending launches. Until then, EQTY takes no deposits for loans.