Borrowing

Start borrowing

To start borrowing of USDs, you simply require a compatible wallet (e.g., MetaMask or Rabby) containing assets accepted by Stablis as collateral types, such as artMETIS. Additionally, ensure your wallet holds sufficient Metis to cover the associated gas fees for opening a Chest.

Chests

A Chest is where you initiate and manage your loan. Each Chest is associated with an ERC20 address, and each address can only have one Chest per collateral type. If you are familiar with Vaults or CDPs on other platforms, Chests share a similar conceptual framework.

Chests maintain two balances: one consists of assets serving as collateral, and the other represents a debt denominated in USDs. You can modify the amounts of each by adding collateral or repaying debt. As you make adjustments to these balances, the collateral ratio of your Chest changes accordingly.

You have the flexibility to close your Chest at any time by fully repaying your debt.

Maximum capital efficiency

The main reason why people take out loans at Stablis protocol is because it is the most capital efficient borrowing system on Metis. Instead of selling METIS to have liquid funds, people can stake their METIS to earn yield and use artMETIS as collateral to borrow USDs against it with the possibility to repay that loan at a future date without interest.

Multi-collateral

Collateral is the asset which a borrower must provide to take out a loan, acting as a security for the debt.

Stablis will start with artMETIS as collateral type but has the ability to add more collateral types in the future through governance voting. The main focus for Stablis will be on adding yield bearing assets as collateral types.

Borrowing Fees

Stablis charges a one-off borrowing fee. Fees

Repay loan

Loans issued by Stablis do not come with a predefined repayment schedule. You have the flexibility to keep your Chest open and settle your debt at any time, provided that you uphold the minimum collateral ratio for that collateral type. This means you have the freedom to repay your borrowed amount whenever it suits you, offering a convenient and customizable approach to managing your loans.

Collateral ratio

The ratio between the dollar value of your collateral and your debt in USDs will fluctuate over time as the price of the collateral asset changes. Stablis will define a minimum collateral ratio for each collateral type asset. Stablis minimum collateral ratio starts at 125% but can vary depending on which collateral type you deposit. It's important you maintain a healthy collateral ratio to prevent liquidation of your Chest.

Low interest rates

Stablis charges a one-time borrowing and redemption fee that is dynamically adjusted based on the preceding redemption fee. Additionally, the community can alter the interest rate through governance mechanisms to align with prevailing market rates. Fees E.G.: If more redemptions are happening (which means USDs is likely trading at less than 1 USD), the borrowing fee would continue to increase, discouraging borrowing.