FAQ

Lending & Borrowing FAQs

Q: What tokens can I use as collateral?

A: We're launching with $TOSHI as our first collateral type. More Base tokens including $KTA, $BRETT, $DEGEN, and others will be added based on liquidity, community demand, and risk assessment. Each new collateral type gets its own isolated market.

Q: How does lending on Macro work?

A: Supply USDC to Macro vaults and earn yield from borrowers. Your supplied assets are pooled and made available to borrowers who pay interest. You maintain full control and can withdraw anytime there's available liquidity. Interest accrues in real-time and compounds automatically.

Q: How does borrowing work?

A: Deposit supported Base tokens (starting with $TOSHI) as collateral and borrow USDC up to 50% Loan-to-Value (LTV). Your collateral stays in the vault while you receive USDC to use however you want. Pay interest only on what you borrow, repay anytime, and withdraw collateral once the loan is repaid.

Q: What is Morpho and why does Macro use it?

A: Morpho is battle-tested DeFi infrastructure securing billions in TVL on Ethereum mainnet. It provides isolated lending markets, immutable smart contracts, and proven security. By building on Morpho, Macro inherits institutional-grade infrastructure without reinventing the wheel, ensuring your funds are protected by audited, time-tested code.

Q: What is the liquidation process?

A: If your loan reaches 77% LTV due to collateral value dropping or interest accruing, your position becomes eligible for liquidation. Liquidators can repay part of your debt and receive your collateral at a discount. Monitor your position and add collateral or repay debt to avoid liquidation.

Q: Can I lose my collateral?

A: Your collateral is only at risk if your LTV reaches 77% and you get liquidated. Below this threshold, your collateral is safe. You maintain full control and can add more collateral or repay your loan at any time to reduce risk.

Q: What interest rates can I expect?

A: Interest rates are dynamic and determined by supply and demand. When more people want to borrow, rates increase. When more liquidity is supplied, rates decrease. Current rates are always displayed transparently in the app before you lend or borrow.

Q: How often is interest calculated?

A: Interest accrues every block (approximately every 2 seconds on Base). For lenders, this means continuous compounding. For borrowers, your debt grows gradually, and you can see real-time updates in the interface.

Q: Are there any fees besides interest?

A: The protocol takes a small percentage of interest paid by borrowers.There are no hidden fees. What you see is what you get.

Q: Is there a minimum or maximum amount I can lend or borrow?

A: Minimum amounts are set to ensure gas efficiency (typically $10-50 worth). Maximum amounts depend on available liquidity in the pool. The interface shows current availability before you transact.

Q: How do I monitor my position health?

A: The Macro dashboard displays your LTV ratio, liquidation threshold, and position health in real-time. Set up notifications to alert you if your position approaches risky levels. We recommend maintaining LTV below 65% for safety buffer.

Q: What happens to liquidated collateral?

A: When a position is liquidated, liquidators purchase the collateral at a discount (typically 5-10%). This incentivizes quick liquidations to protect lenders while giving borrowers the best chance to avoid total loss.

Q: Can I migrate positions from other lending protocols?

A: Direct migration isn't possible due to isolated market architecture. You'll need to repay existing loans and deposit fresh collateral. However, flash loans could potentially enable atomic migrations for advanced users.