Introduction

A simple lending model where loans expire instead of liquidating.

Based Loans introduces a new approach to crypto lending inspired by the mechanics of a traditional pawn shop.

Borrowers deposit tokens as collateral and receive a USDC loan for a fixed term. 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 structure removes liquidation pressure while creating a clear and predictable lending system for both sides of the market.

What Makes Based Loans Different

● No Liquidations

Traditional DeFi lending platforms rely on liquidations when collateral values fall. Based Loans removes this mechanism entirely by using fixed loan terms and predetermined outcomes.

● Time-Based Loans

Every loan has a defined expiration. Borrowers can buy back any portion of their collateral at any time before the loan expires.

● Pawn Shop Mechanics

Borrowers receive liquidity while retaining the option to reclaim their collateral. If they choose not to, the collateral transfers to lenders when the loan expires.

● Clear Outcomes for Both Sides

Borrowers always know the exact buyback price of their collateral, while lenders either receive their USDC plus premium or the underlying collateral.

What’s Next

• Initial protocol launch — April 2026

• Expansion of supported collateral assets

• Additional lending pool growth

• Expanded documentation and developer resources