Supply and Borrow
The Borrow and Lend module of OpenFi allows users to deposit tokenized real-world assets (RWA) as collateral and borrow stablecoins against them. It is designed to combine institutional-grade RWA with on-chain liquidity.
1. Supported Collateral
OpenFi integrates tokenized assets issued by regulated partners:
Equities (xStocks): Tokenized representations of publicly listed shares, enabling investors to collateralize equity positions on-chain.
Gold (MatrixDock): Tokens backed by custodied physical bullion, combining the stability of gold with on-chain programmability.
Money Market Funds (Asseto): Tokens backed by U.S. Treasuries and short-term commercial paper portfolios, offering low volatility and predictable yield.
These assets are selected to provide a diverse, lower-volatility collateral base compared to crypto-native assets.
2. Borrowing Mechanism
Deposit: Users deposit tokenized RWAs into OpenFi’s lending contract.
Valuation: Oracles (via Chainlink) provide real-time pricing of the collateral.
Collateralization: The protocol assigns Loan-to-Value (LTV) ratios tailored to each asset class.
Borrowing: Users can withdraw stablecoins (USDC, USDT) against their collateral.
Repayment: Borrowers repay with interest to reclaim their collateral. If they fail, liquidation mechanisms apply.
This structure enables investors to unlock liquidity without selling their underlying RWA holdings
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