Paydax allows users to borrow money using governance tokens like veCRV or veLYNX,
even if those tokens are locked and cannot be transferred or sold. These types of tokens are
usually locked for long periods (sometimes years) so users can vote on protocol decisions or
earn special rewards. In most platforms, once you lock these tokens, your funds are stuck
and can't be used elsewhere, which limits your financial flexibility.
Paydax solves this problem by accepting these locked tokens as collateral. This means you
can still benefit from holding them (like voting power or staking perks) while also using their
value to borrow blue-chip assets. You get access to your funds without giving up your locked
tokens or waiting for the lock-up period to end. This feature gives users more freedom to use
their capital and makes it easier to participate in DeFi without losing control of long-term
investments.