Exempt Borrow
Borrow CZUSD against CZF collateral with no interest or liquidiation risk.
Users deposit CZF and can borrow up to 75% of the USD value of the deposited CZF as CZUSD. The borrowing is exempt, meaning there is no interest or liquidations. There are three popular strategies for using Exempt Borrow.
Leverage: users who wish to leverage their CZF without risk of losing their collateral borrow CZUSD to buy CZF then deposit this CZF into other poosl or back into Exempt Borrow.
CZUSD/BUSD farming: users who wish to farm large amounts of CZUSD while also holding CZF may find it more convenient to deposit CZF and borrow CZUSD instead of purchasing CZUSD on the market. After borrowing the CZUSD, the user pairs it with BUSD and deposits it into a farm.
Maintaining upside: often users need to acquire assets for their personal expenses or to pursue new investment opportunities but want to maintain their upside to CZF. Since Exempt Borrow has no interest or liquidations, users borrow CZUSD instead of selling CZF so that as the CZF price increases over time they can free up this CZF without ever needing to pay off the intial loan. Some users of this strategy never withdraw their CZF from Exempt Borrow, instead preferring to borrow more CZUSD as the price of CZF rises.
Last modified 1mo ago
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