Lending / Borrowing

On Spine, lending and borrowing with fixed interest rates involve buying or selling sBOND. Our specialized algorithm optimizes the balance of liquidity between USDC and sBOND to provide users the best, most efficient interest possible.

Lending:

When it comes to lending, users would choose a desired maturity date, swap USDC to the liquidity pool in exchange for a corresponding amount of sBOND that can be redeemed for USDC + a fixed amount of interest at maturity. Read more about our lending mechanism at LENDING.

Borrowing:

On the borrowing side, users must lock up blue-chip assets like Ethereum and Bitcoin to mint sBOND. With this sBOND, users can choose a maturity date and exchange for an amount of USDC to be paid at maturity with a fixed interest.

To safeguard lenders and maintain stability, If the collateral value drops too much, it can be automatically liquidated to ensure lenders receive their yield. Read more about our borrowing mechanism at BORROWING.