Docs

How it works

Pledge is a peer to peer loan book on Robinhood Chain. There is no shared pool. Every loan is funded by exactly one lender, on the terms that lender chose, and secured by stock tokens the borrower locks in the contract.

Lender

Posts an offer: an amount of USDG, a term, a flat fee and a maximum loan to value. The USDG sit in the contract until someone borrows.

Borrower

Picks an offer, locks stock tokens and receives the USDG in the same transaction.

Repayment

Principal plus the flat fee goes straight to the lender, and the stock goes back to the borrower.

Liquidation

If the loan becomes unsafe or runs past due, the lender receives the whole collateral. Anyone can trigger it.

Posting an offer

Amount

The USDG you are willing to lend. They move into the contract when you post and stay there until borrowed.

Term

From 1 to 90 days. Every loan taken from the offer is due that many days after it starts.

Flat fee

A share of the principal, paid once at repayment, up to 20%. A 1.5% fee on a 14 day term is about 39% a year.

Max loan to value

How many dollars you lend per dollar of stock. At 40% a borrower locks $2.50 of stock for every dollar. Each stock also has its own cap, and the lower one applies.

Minimum loan

The smallest loan the offer accepts, so one offer is not split into dust. When less than the minimum is left, the offer closes and the rest returns to you.

Changing your mind

You can add USDG, withdraw the part that is not lent, or close the offer at any time. Money already out on loans come back when those loans are repaid or liquidated.

Taking a loan

Choose an offer, the stock you want to lock and the amount. The app works out the collateral needed at the offer's loan to value and suggests extra on top, so a small dip does not put the loan at risk.

What you repay

Principal plus the flat fee. It does not change while the loan is open, and repaying early costs the same fee.

Due date

Start time plus the term. After the due date there is one day of grace before the loan can be liquidated.

Adding collateral

You can lock more of the same stock at any time to push the liquidation line further away.

Health and liquidation

Health compares your collateral with your debt. It is the stock's value multiplied by its liquidation threshold, divided by what you owe. At 1.00 the loan sits exactly on the line.

Health above 1.5

Comfortable. The stock can fall a long way before anything happens.

Between 1.0 and 1.5

Watch it. Add collateral or repay if the stock keeps falling.

Under 1.0

Anyone can liquidate. The lender receives all the locked stock and the loan closes.

Overdue

One day after the due date, an unpaid loan can be liquidated whatever its health.

Liquidation hands the collateral over as it is, with no auction and no penalty on top. The borrower keeps the USDG they borrowed. The lender may end up with stock worth more or less than the debt.

Prices

Each Stock Token is priced by its Chainlink feed. The feeds run 24/5 and hold the last price over weekends and holidays. Loans cannot be opened or liquidated on a price older than three and a half days, or while the token's issuer pauses its price. Changing a feed takes 48 hours, so borrowers see it coming.

Contracts

Everything the app shows is read from these contracts on Robinhood Chain.

Risks

Real money

Offers, loans and collateral are real USDG and real Stock Tokens. Only lend or borrow what you can afford to lose.

Not audited

The contracts are tested, including against mainnet itself, but have not been reviewed by an outside auditor.

Price moves

Stocks can gap at the open after a weekend and a loan can pass the liquidation line before anyone acts.

Stock Tokens

They are issued by Robinhood Assets (Jersey) Limited, which can pause them or block addresses, and they are not offered to US persons. A paused token cannot be repaid or liquidated until it resumes.

Oracle

Prices come from Chainlink. If a feed stops, the book pauses until it is fresh again.

No advice

Nothing on this site is financial advice or an offer to lend, borrow, buy or sell anything.

The token

$PLEDGE is a community token for the project. It does not unlock features, pay yield or give any claim on the loan book, and the app works the same without it.