Protocol
A lending system designed around time instead of liquidations.
Based Loans introduces a fixed-term lending model inspired by the mechanics of a traditional pawn shop.
Borrowers deposit tokens as collateral and receive USDC loans with clearly defined parameters. Instead of facing liquidation risk, borrowers simply have until the loan’s expiration to buy back any portion of their collateral at a fixed price that includes the lender premium.
If the loan expires with collateral remaining, that collateral is forfeited and transferred to lenders.
This approach removes liquidation pressure while creating predictable outcomes for both borrowers and lenders.
Protocol Overview
● How Loans Work An overview of the loan lifecycle, from collateral deposit to loan expiration.
● Borrowing How borrowers access liquidity and manage their collateral during a loan.
● Lending How lenders provide USDC liquidity and earn premiums or receive collateral.
Why This Model Matters
• Loans have fixed terms and clearly defined outcomes • Borrowers avoid liquidation risk during market volatility • Lenders receive predictable premiums or collateral • Loan mechanics are enforced entirely through smart contracts
Based Loans is designed to create a transparent and predictable lending system where both borrowers and lenders understand the rules before participating.
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