Repay money anytime

Borrowers can repay their loans at any time, as long as the Health Factor remains above 1. This flexibility is crucial for borrowers, allowing them to invest the borrowed funds over a longer period.

Examples

Ordinals

1. Alice purchased an ordinal at a floor price of 0.2 BTC.

2. She used a peer-to-peer service to borrow 0.1 BTC, which she then invested in asset "A.".

3. After 12 days, the ordinal's floor price increased to 0.23 BTC, but Alice still needed to sell some of asset "A" to repay the loan

Crypto (BTC/Runes)

1. Alice bought $10,000 worth of Runes tokens.

2. She borrowed $5,000 in StableCoin through a peer-to-peer service and used it to purchase asset "A."

3. After 10 days, the price of the Runes token rose by 10%, yet Alice still needed to sell some of asset "A" to repay her loan.

If Alice had used a peer-to-pool service, she wouldn’t have had to sell asset "A" to repay the loan, allowing her to retain its full value as it appreciated.

Since the assets listed on a peer-to-pool lending service are typically blue-chip and have good liquidity in decentralized exchanges (DEX) and centralized exchanges (CEX), borrowers can confidently use borrowed funds for as long as they needed. This flexibility offers a significant advantage compared to fixed-term peer-to-peer lending services.