Repayment Type | or |
| Principal | Amount of principal being lent to the borrower |
| Principal Asset | Currency of principal |
| Collateral | Minimum amounts and mints of the collateral |
| APY | Annualized cost of funds over the loan term, expressed as a percentage. |
| Duration | Length of time of the loan contract |
| Principal Oracle | Optional pricing oracle to calculate principal value |
| Collateral Oracle | Optional pricing oracle to calculate collateral value |
Protocol Concepts
Loans & Orders
Loans on Loopscale are bilateral contracts between a lender and borrower, matched via the protocol’s Credit Order Book. Borrowers receive funds and escrow collateral, while lenders earn yield for the loan’s duration.
Each loan is defined by a set of configurable terms, including rate, payment schedule, duration, collateral requirements, and default conditions.
Orders
- Lend Order: Defines how much capital a lender is offering, the requested rate, term, and accepted collateral.
- Borrow Order: Defines how much the borrower wants to borrow, what they’ll post as collateral, and for how long
The Loopscale Protocol supports both Market and Limit orders for borrowing and lending. Orders can be configured across multiple parameters to support specialized use cases, including undercollateralized borrowing, receivables finance, and more.
Primary Parameters
Primary Parameters
Advanced Parameters
Advanced Parameters
Repayment Frequency | Frequency of interest payments in Simple-Interest loan |
| Default Type | and/or |
| Auto-Liquidation | Enable third-party liquidators to repay lender in exchange for collateral in a default |
| Minimum ratio of collateral to debt that must be maintained by the borrower | |
| Number of outstanding interest payments allowed prior to a payment-based default | |
| Early Payment Penalty | A percentage of the original interest charged on early repaid principal |
| Late Payment Penalty | A percentage of a late repayment is charged on late payments |
| Grace Period | Amount of time after a missed payment at which it is considered late |
Oracle-Agnostic Pricing: Borrowers can set up loans that price their collateral or principal using custom or arbitrary oracles, enabling pricing for assets that may be illiquid or lack third-party oracle support. Loans may also be oracle-less, with borrowers proposing terms that solely default based on missed payments or loan expiry.