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.

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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.

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.