Liquid Loans What Is It?

Liquid Loans is the first truly decentralized lending protocol built specifically and exclusively for PulseChain.

Liquid Loans allows you to draw 0% interest-free loans using the PulseChain native token (PLS) as collateral.

Loans are paid out in USDL – a USD value pegged stablecoin – with a minimum collateral ratio required for a loan of 110%.
The repayment schedule is timeless.

Loans are secured by a Stability Pool containing USDL and by fellow borrowers collectively acting as guarantors of last resort.

Liquid Loans as a protocol is a non-custodial, immutable, and governance-free lending protocol. The protocol is a finished product with no admin keys.

Why develop Liquid Loans?

The Liquid Loans protocol was developed to allow owners of PLS a method of extracting value from their holdings, without the need to ever sell.

By locking up PLS and minting USDL, a PLS holder can take a 0% interest-free loan against their holdings, on a timeless repayment schedule.

Is the protocol owned?

The protocol smart contract code is completely immutable and therefore has no owner or operator. There are no admin keys, and nobody can alter the rules of the system in any way once deployed.


LOAN staking

LOAN is the native token in the Liquid Loans protocol. It exists in order to provide Stability Providers with enough incentive to provide stability, but that’s not to say it’s not a significant earner in its own right.

Stability providers can, of course, sell the LOAN token they receive if they want to, or they can stake it in the Staking Pool. Staking LOAN token has its own rewards – LOAN stakers earn a pro rata share of the system’s borrowing and redemption fees in USDL and PLS proportional to their size in the Staking Pool.

So if you’re a stability provider and a LOAN staker, then you’re really using the Liquid Loans system like a pro.