Borrow

Permissionless Borrowing.

Orki Finance pioneers user-set interest rates, allowing borrowers to determine and adjust the rate they are willing to pay. This innovative approach fosters market-driven rate discovery without reliance on governance or algorithmic rate management.

• Minimum Debt: Borrow at least 500 $USDK .

• No Lockup Period: Withdraw collateral anytime unless the borrow market’s Loan-to-Value (LTV) exceeds the limit %.

• Maximum LTV:

  • ETH: 90.91%

  • swETH: 83,33%

  • rswETH: 83,33%

  • weETH: 83,33%

  • Swell: 83,33%

• Refundable Gas Deposit: 0,005 ETH is set aside to cover potential liquidation gas fees.

• Includes a USDK upfront interest rate fee (7 days )

Each collateral type has its own independent borrow market, enabling diverse rate markets to develop. Orki combines robust security, immutability, and decentralization to deliver a highly efficient borrowing experience.

• Independent Borrow Markets: Each collateral type has its own market, ensuring risk compartmentalization.

• Fallback Mechanisms: Liquidation options like JIT and redistribution protect against Stability Pool depletion.

• No Recovery Mode: Borrowers enjoy consistently high LTVs. As a safeguard, markets may shut down if total collateralization ratios fall below critical thresholds.

Why are there any other fees related to borrowing?

To impede Trove redemption evasion strategies where borrowers try to minimize their interest payments in an unfair manner, a small “premature adjustment fee” is charged on interest rate changes that happen within less than 7 days since the last adjustment (or the opening of the Trove). The premature adjustment fee is equal to 7 days of average interest on the respective borrow market. Note that this fee differs from the user’s set interest rate.

The fee is denominated in USDK and added to the Trove's debt. The same fee is charged when a new Trove is opened or when its debt is increased (only affecting the added debt).