Nebula Litepaper
  • 👉 Nebula Overview
    • Nebula Intro
      • What is Nebula?
      • The problem
  • Competitive Advantages
    • Innovative Collateralization with DEX LP Tokens
    • Cross-Chain
    • Yield Tranching Mechanism
    • Lending Pools
    • Smart Contract
    • Decentralized Governance
    • Community-Driven Governance
  • Comparison with Competitors (Expanded)
  • ⭐ Product Frature
    • User Roles
      • Supplier
      • Borrower
      • Governance & Participants
      • Developer
  • Protocol Architecture
    • Core Components
    • EVM Compatibility with Enhanced Security
    • Cross-Chain Interoperability via Nibiru’s IBC
    • Advanced Oracle Integration
    • Security
  • Nebula Product
    • Enhanced Liquidity(Upcoming)
    • Customizable Pool Creation
    • Cross-Chain CDP Contracts(Upcoming)
    • Yield Tranching(Upcoming)
  • Use Case(Sample)
  • ⭐ Tech Overview
    • Nebula Technology Overview
      • Consensus and Voting Mechanism
      • Validator-Based Oracle System
      • Risk Management and Security
        • Collateralization Requirements
        • Liquidation Mechanisms
        • Insurance Fund
        • Interest Rate Risk
        • Smart Contract Security
        • Market Risk
        • Governance Risk
        • Cross-Chain Risks
      • Interest Rate Model
        • Types of Interest Rates
        • Interest Rate Adjustments
        • Benefits of the Model
        • Example Scenarios
        • Governance Control
        • Competitive Advantage
      • Governance
        • Governance Framework
        • Token Utility in Governance
        • Governance Process
        • Key Governance Parameters
        • Governance Security
        • Governance Use Cases
        • Long-Term Decentralization
  • 💲Token
    • Token Utility
    • Tokenomics
    • Nebula Token Info
  • 💹GTM
    • Points System
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On this page
  • Role and Function
  • Benefits
  1. ⭐ Product Frature
  2. User Roles

Borrower

PreviousSupplierNextGovernance & Participants

Last updated 5 days ago

Role and Function

  • Accessing Capital: Borrowers can obtain loans by providing acceptable collateral, enabling them to leverage their assets for investment, trading, or liquidity needs without liquidating holdings.

  • Flexible Interest Rates: Borrowers choose between variable rates, which adjust based on market conditions, and stable rates for predictable repayment planning. This flexibility allows borrowers to align their borrowing strategy with their financial goals.

Benefits

  • Capital Efficiency: By leveraging assets as collateral, borrowers unlock liquidity without incurring taxable events associated with asset sales. This approach preserves their long-term investment positions.

  • Negative Interest Rate Opportunities: In periods of excess liquidity, the protocol may offer negative interest rates to encourage borrowing. Borrowers can capitalize on these opportunities to reduce borrowing costs or even profit from holding borrowed assets.

  • Advanced Risk Management: Borrowers benefit from the protocol's dynamic collateralization ratios and risk assessments, which can result in more favorable borrowing terms for lower-risk profiles.