Positions can be liquidated. Borrow only what you can stand to lose.
Look up a position by address ⌘K

Borrow against PAWN

35% LTV

The 5% trade tax fills the vault. The vault is the lender.

Available to lend
0 ETH
In the vault
0 ETH
Out on loan
0 ETH
Borrow rate
10%APR

Vault since launch

Every trade adds to it

The books

—
Free to lend
—
Out on loan
—
PAWN held as collateral
—
Max loan on your bag
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Written off to date
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1

Somebody trades

Every buy and sell of PAWN pays a 5% tax, fixed at launch and impossible to change.

2

The tax lands here

It arrives as ETH, is wrapped into WETH, and sits in a contract with no owner and no withdraw function.

3

You post collateral

Deposit PAWN and borrow up to 35% of what it is worth, priced off a 30-minute average, never the spot tick.

4

Watch your line

Interest runs at 10% a year. If PAWN falls far enough that your debt hits half your collateral, someone closes you out.

What can go wrong

You can be liquidated

This is a loan against a volatile token, so the risk is real and it is yours. Cross the line and a liquidator repays part of your debt and takes your collateral at an 8% discount. Borrowing the full 35% means a 30% drop puts you there.

The desk lends from trading fees

Nobody deposits into this vault. It fills from the 5% tax on every PAWN trade, which means there are no lenders to make whole — if a position goes bad, the loss lands on the protocol treasury and nowhere else.

Prices come from a 30-minute average

Never the live tick, and never without a sanity check against it. If the two disagree by too much the desk stops lending until they agree again. Borrowing is also blocked in the same block you deposit.

Half the vault stays put

No more than 50% of the vault can be on loan at once. It caps how much can be lost to any one bad day, and it means a liquidator can always be paid.