General FAQs

Frequently-Asked Questions about MYSO

What are Zero-Liquidation Loans?

• Zero-Liquidation Loans are crypto-collateralized loans that are not subject to any price-based liquidations. This means that there are no liquidation thresholds and health factors to consider and borrowers can always reclaim their collateral as long as they repay their loan before expiry. If a loan were to become undercollateralized leading to a borrower default, the pledged collateral would be unlocked for the counterparty lender to claim after expiry of the loan.

What is a covered call?

• A covered call is a structured product strategy, frequently employed in TradFi for yield enhancement, that involves selling call options on an asset a user is already holding, or "covering", in exchange for a premium. In the case of MYSO, users can earn upfront stablecoin yield for lending an altcoin for a fixed duration with an upside cap. This means that if, at the end of the loan duration, the altcoin didn’t exceed the upside cap, the lender gets back their tokens; otherwise, they get converted at their defined strike price. MYSO facilitates this strategy trustlessly without any counterparty risk.

How do I become a lender on MYSO?

• MYSO's products are permissionless, meaning anyone can create their bespoke lender vault and start creating loan offers or engage in structured product strategies. Simply head over to the MYSO DApp, set up a bespoke vault, and start sending out quotes with your preferred loan parameters. If you want to borrow, pledge collateral and accept a live loan offer!

I've forgotten to repay my loan prior to expiry, and now I can't reclaim my collateral. Does this mean I've been liquidated?

• No, defaulting on your loan is not the same as getting liquidated. MYSO works without any price-based liquidations, meaning that during the lifetime of the loan, you can always reclaim your pledged collateral. However, if you forget to repay prior to the agreed expiration date on your accepted loan quote, you forfeit the right to reclaim your collateral.

What's the best way to get started using MYSO?

• First, get acquainted with MYSO by reading through these docs or writings that have been released on how the protocol works and MYSO's suite of products. Then, head over to the MYSO DApp and begin your journey - it's up to you to figure out what credit market or structured product strategy you want to create/interact with!