Zero-Interest Borrowing

For USDC and WETH collaterals, Lore issues interest-free loans denominated in the loreUSD stablecoin. Instead of paying interest, users pay a 0.5% issuance fee, meaning they don’t need to worry about micro-managing their position.

There is no fee for paying back a loan.

loreUSD Loan Example

• If a user deposits sufficient collateral, they can take out a 100 loreUSD loan.

• Their total debt will appear as 105.5 loreUSD, which is made up of a 0.5% issuance fee (in this case 0.5 loreUSD), 5 loreUSD held as a liquidation deposit, and 100 loreUSD minted to the user’s wallet.

• When the user pays back 100.5 loreUSD, the 5 loreUSD liquidation deposit will automatically be paid into their position and the position will be closed.

If you have questions, please reach out to the Lore team in our official Discord.