Despite RociFi pioneering under-collateralized and capital-efficient DeFi loans, each loan on RociFi must be at least partially secured by collateral. In V2, users are able to secure stablecoin loans with 6 types of collateral: WETH, WBTC, MATIC, DAI, USDC, USDT.
Read here about Loan-to-value and Collateral configurations in RociFi V2.
When a user proceeds to take a loan, the required collateral amount moves from a user’s available amount to their locked amount. The locked amount is collateral posted by the user to support a specific loan. Importantly the locked collateral amount can only be returned to the user when they fully repay the loan. Partial payments or a rise in the collateral’s value will not release unlock the collateral supporting a loan. Only when a loan is fully repaid is the collateral supporting it is unlocked. At which point the user could either take a new loan or withdraw it.
Users are able to add collateral to the protocol either at the point of borrow or though User Dashboard’s Collateral menu.
Users can withdraw available, i.e. unlocked within the loan, collateral through Dashboard.