Fixed Term Liquidity Loans
Tokens today present their holders with a dilemma: realizing any gains typically requires selling, sacrificing exposure to future upside in exchange for liquidity. Although some tokens can be used as collateral on lending platforms, the process is restrictive, unreliable, and heavily reliant on external liquidity to determine borrowing capacity.
Coupled with the naturally attention-driven markets and inefficient liquidity structures in crypto today, the opportunity cost problem of holding tokens can result in extreme volatility as traders rotate in and out of different assets. Baseline directly addresses this issue by offering simple fixed-term, fixed-interest loans against bToken collateral, giving users a new way to realize the value of their assets without sacrificing upside exposure by borrowing.
In Baseline, bTokens can be deposited to withdraw their underlying BLV liquidity for an upfront fee. All collected fees are directed to the deployer wallet.
Loan Fees & Terms
Baseline's loan fees are paid upfront. There is no fixed duration for loans. Users are limited to one active loan per bToken, but can add collateral to existing positions to increase their borrow position.
In $YES, the origination fee is x% per year.
Loans can be repaid in full or in partial payments. Extensions are not necessary as there is no time based default.
Boosting
Baseline's unique lending model allows users to borrow more liquidity without additional collateral when the
BLV grows. This is possible because the user’s deposited collateral has increased in value due to the BLV increase:
since the lending facility calculates how much can be borrowed based on the BLV of the deposited collateral,
the borrowing capacity will have increased with every bump().
For example, if a user initially deposits 1000 bTokens with a $1.00 BLV, they can borrow $1000. If the BLV increases to $1.02, the borrowing capacity rises to $1020, offering an additional $20 of borrowable capital. Boosting is automatically applied during loan extensions or with the addition of collateral. Boosts incur the same fees and terms as any other loan in the Credit Facility.