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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

Repayment Type
or
PrincipalAmount of principal being lent to the borrower
Principal AssetCurrency of principal
CollateralMinimum amounts and mints of the collateral
APYAnnualized cost of funds over the loan term, expressed as a percentage.
DurationLength of time of the loan contract
Principal OracleOptional pricing oracle to calculate principal value
Collateral OracleOptional pricing oracle to calculate collateral value
Repayment Frequency
Frequency of interest payments in Simple-Interest loan
Default Type and/or
Auto-LiquidationEnable 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 PenaltyA percentage of the original interest charged on early repaid principal
Late Payment PenaltyA percentage of a late repayment is charged on late payments
Grace PeriodAmount 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.
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