Faq

Various questions I've been asked

When a loan term ends and the borrower doesn’t repay, the lender just take the borrower’s collateral? What does happen in this case?

When liquidations, the collateral gets "unwrapped", but right now for nimbora I don't because I can't unstant unwrap.

So if a dai/usdc LP position on ekubo is used as collateral to lend USDT, at liquidation time it get unwrapped to a certain amount of dai and usdc, and those tokens get redistributed to the lender. So the lender get some DAI and some USDC instead of its USDT.

And unfortunately this cannot be done for all collateral, for instance nimbora asset where the withdraw process is centralized and you cannot instant exit, so if the collateral is some nsDAI the nimbora version of dai, I just give the lender the nsDAI and he has to slow exit himself.