Lending Markets

Paydax supports multiple lending markets to facilitate cross-asset borrowing and capital efficiency:

1. Blue-Chip Collateral → USDC/ETH/BTC Loans:

• Loan-to-Value (LTV): 75%

• Interest Rate: 6% APR (fixed)

• Use Case: Users can borrow liquid assets while maintaining exposure to their preferred collateral

1. PDP Collateral → Blue-Chip Loans:

• LTV: 80%

• Interest Rate: 5% APR (fixed)

• Use Case: PDP holders can access liquidity without selling their governance tokens

1. Exotic Assets → Blue-Chip Loans:

• LTV: 60-70% (depending on asset)

• Interest Rate: 7% APR (fixed)

• Use Case: Unlock value from LP tokens, staked assets, and RWAs

Yield Generation:

• Lenders: Earn 4–6% APY from borrower interest, minus protocol fees

• Liquidity providers: Competitive yields based on utilization rates

These markets provide predictable borrowing costs and stable yields, enhancing capital efficiency for users.