Borrowing

LFG.RICH V5 includes collateral borrowing for official tokens. Users can lock tokens as collateral and borrow native BNB against the token’s floor value. Borrowing is based on the protocol floor, not temporary market spikes. There is no liquidation engine and no ongoing interest.

Floor-based value

Borrowing power is calculated from the protocol floor instead of short-term market price spikes.

No liquidation engine

V5 borrowing does not use a traditional liquidation mechanism.

Fixed 3% fee

Borrowing has a one-time 3% fee, split between platform and direct parent/platform depending on referral state.

Borrow more

If the floor rises, existing collateral may support additional borrowing through borrowMore(poolId).

Key properties

Borrowing power is based on floor value.
Locked collateral is removed from circulating supply while the borrow position is active.
Borrowing has no liquidation mechanism.
Borrowing has no ongoing interest.
A fixed one-time 3% borrow fee is deducted from the borrowed value.
Partial repayment unlocks a proportional amount of collateral.
Full repayment unlocks the remaining collateral.
Borrow state is stored per poolId and user.

Borrowing flow

The V5 borrow flow is:

Resolve token poolId

Borrow state is stored per poolId and user.

Approve the Hook

The Hook must be approved to transfer the collateral tokens.

Call hook.borrow(poolId, amount)

The borrow action is executed through the Hook, not the Swap Router.

Hook locks collateral

Tokens are transferred into collateral accounting and removed from circulating supply while locked.

Hook records debt

Debt is recorded as the gross borrowed value.

User receives net BNB

The borrower receives BNB after the fixed 3% borrow fee is deducted.

Function:

function borrow(bytes32 poolId, uint256 amount);

The user must approve the Hook, not the Swap Router:

approve(HOOK_ADDRESS, amount)

Borrow fee

The V5 borrow fee is fixed at 3% of the gross borrowed value.

Gross borrow value: 1.00 BNB
Borrow fee:        0.03 BNB
User receives:     0.97 BNB
Debt recorded:     1.00 BNB

Debt is recorded as the gross borrowed value, not only the net amount the user receives.

Repayment flow

Users repay by sending BNB to:

function repay(bytes32 poolId) payable;

If the repayment is partial, the protocol unlocks a proportional amount of collateral. If the repayment closes the debt, the remaining collateral is unlocked. If a user sends more than the outstanding debt, the contract handles repayment according to the debt amount and refunds the excess.

Borrow more

If the floor rises after a borrow position is opened, the user’s existing collateral may support additional borrowing. Developers can estimate this with:

function estimateBorrowMore(
    bytes32 poolId,
    address user
) view returns (uint256 additionalEth, uint256 fee);

Then call:

function borrowMore(bytes32 poolId);

when additional value is available.

Read functions

function borrowedETH(bytes32 poolId, address user) view returns (uint256);
function collateralBalance(bytes32 poolId, address user) view returns (uint256);

On BSC these values represent BNB, even though the Solidity names use ETH.

Overview

Protocol

Getting Started

Developers

Resources

Floor-based value

No liquidation engine

Fixed 3% fee

Borrow more

Key properties

Borrowing flow

Borrow fee

Repayment flow

Borrow more

Read functions

Floor-based value

No liquidation engine

Fixed 3% fee

Borrow more

​Key properties

​Borrowing flow

​Borrow fee

​Repayment flow

​Borrow more

​Read functions

Key properties

Borrowing flow

Borrow fee

Repayment flow

Borrow more

Read functions