The 01 Borrow Lending pools allow anyone to take on zero-fee over-collateralized loans. The APY paid from borrowers go directly to depositors.

What is Borrowing?

Borrowing on 01 entails depositing a certain amount as collateral in a certain token, and withdrawing (borrowing) a certain amount of another token type out of the protocol, directly into your wallet. The deposited collateral ensures that you will always be able to repay back your loan. You can then do whatever you want with the borrowed amount.

Why Borrow?

  • Increase capital efficiency by simultaneously holding tokens, and utilizing them. Ex: Alice strongly believes that SOL will double in price, so she doesn't want to sell her SOL. Instead, she deposits it as collateral, and borrows USDC against it. This allows her to use the borrowed USDC to do whatever she wants, all while continuing to hold her SOL.