How it works

Each market is an isolated pair: one collateral asset, one borrow asset. NVDA/USDG cannot be harmed by what happens in SPY/USDG. A bad debt event in one market is contained to the lenders of that market.

Supplying

You deposit USDG and receive shares in the market's supply. The shares do not change in number; their claim on the pool grows as borrowers pay interest. You can withdraw whenever there is idle liquidity — and, unlike borrowing, withdrawing is not blocked while the equity market is closed.

If utilisation is at 100%, there is nothing idle to withdraw until someone repays. That is normal for a lending market and is why the interest rate curve rises steeply near the top: the rate is what pulls liquidity back.

Borrowing

Deposit collateral — a Stock Token or WETH.
Borrow USDG, up to the market's LTV against the value of that collateral.
Pay interest continuously, accrued into your debt.
Repay in USDG, or directly with the collateral you are holding.

Your collateral lives in a Position contract that belongs to you alone. It is not pooled with other borrowers' collateral.

Health

Two thresholds, and the gap between them is deliberate:

LTV — the most you may borrow when you open or increase a position.
Liquidation threshold — the point at which the position becomes liquidatable.

Borrowing at exactly the LTV leaves you a small distance from liquidation, not zero distance. For NVDA/USDG that distance is 60% to 65%: a 7.7% fall in the collateral price closes it.

A position is liquidatable when

borrowed value  >  collateral value × liquidation threshold

Both values come from the oracle, and neither can be read while the feed is in a state the contracts refuse to price on.

Repaying with collateral

You do not have to source USDG to repay. repayWithSelectedToken sells the collateral you already hold, through the configured DEX, and repays from the proceeds. The swap is sized against the debt with a small buffer for fees and slippage.

On testnet the DEX is a mock with a fixed, unauthenticated rate table. The repay-with-collateral path works mechanically there, but the prices it uses mean nothing.

The two addresses

Every market has two contracts, and the difference matters for anyone integrating:

	what it is	what you use it for
LendingPool	the contract you transact with	supply, borrow, repay, withdraw — every write
LendingPoolRouter	the accounting and configuration	totals, rates, caps, `windDown` — every read

Getting this backwards does not revert. It returns zeroes, or writes a parameter against an address nothing will ever match. The contracts page lists both for each market.