How Turret works
Turret connects people who hold supported tokens with people who want to lend USDG. Borrowers lock collateral in a smart contract and receive USDG. Lenders provide the USDG and earn interest when loans are repaid.
USDG is the asset used for lending and repayment. Borrowing transfers existing USDG from a pool or funded offer to your wallet.
Borrow and Earn
Each lending pool serves one collateral market. Lenders deposit USDG through Earn. Borrowers use Borrow to lock that market's collateral and draw USDG from the pool.
A pool has its own available liquidity, borrowing limits and interest rate. Supplying to one pool gives you exposure to that pool's borrowers and collateral.
For a borrower, the key measure is loan-to-value, or LTV: the value of your debt divided by the value of your collateral. LTV rises when collateral loses value or interest increases your debt. A position can be liquidated when its LTV rises above the market's liquidation threshold.
For a lender, the deposit is represented by pool shares. Their value reflects the pool's accounting, including earned interest and any recognized losses. Withdrawals depend on the USDG available in the pool.
Read Borrow USDG and Earn with USDG for the steps.
P2P loans
P2P connects a lender and borrower through a funded offer. The lender chooses the USDG principal, collateral quantity, fixed interest and loan duration. Accepting locks the borrower's collateral and transfers the principal to them.
The borrower must repay the full principal and agreed interest by the final deadline. If they do, the lender receives a USDG credit and the borrower receives a collateral credit to withdraw. After default, the lender receives a credit for all of the loan's collateral.
Choosing a product
| Borrow / Earn pools | P2P loans | |
|---|---|---|
| Funding | USDG supplied by a pool's lenders | USDG committed to an individual offer |
| Interest | Accrues over time at the market's borrowing rate | A fixed USDG amount agreed before acceptance |
| Repayment | Flexible repayments against an ongoing position | Full repayment by a fixed deadline |
| Collateral enforcement | Liquidation based on the position's LTV | Default after the repayment deadline and grace period |
| Lender exit | Withdraw available pool liquidity | Cancel an unaccepted offer, or settle the accepted loan |
Pool positions and P2P loans are separate obligations. Portfolio brings them into one view so you can track both.
Before committing funds, read interest and fees and risks and liquidation.