LP collateral

In an LP market your collateral is a Uniswap v3 or v4 liquidity position: the NFT that represents it. You deposit the NFT, borrow USDG against it, and the position keeps earning trading fees. You can still collect those fees, add or remove liquidity, and move the position to a new price range while it is collateral.

Two LP markets are live on mainnet, both borrowing USDG from the Earn vault:

Each market accepts only the pools Paboxo has listed for it, one pool each at block 108993261. A listed pool always pairs USDG with that market's Stock Token. A position in any other pool is refused.

The contracts were deployed on 4 November 2026 (block 105975390). The app shows LP markets on the Borrow page.

How a position is valued

Your position is valued at the oracle's prices for the Stock Token and USDG, never at the pool's price. Moving the pool does not change what Paboxo thinks your position is worth. Fees you have not collected yet do not count.

Borrowing and liquidation do not apply a fixed percentage to that value. Each line is what your position would be worth if the Stock Token fell to a stressed price, using the market's own LTV, liquidation threshold and bonus. With P the oracle price, V(p) your position's value at Stock Token price p, and b the bonus:

borrowing line    =  V(P × LTV × (1 + b)) ÷ (1 + b)
liquidation line  =  V(P × LT  × (1 + b)) ÷ (1 + b)

You may borrow up to the borrowing line. The position becomes liquidatable when your debt is above the liquidation line.

For a plain Stock Token, value falls in a straight line with the price, and these formulas give exactly the Stock Token market's rules: V(P) × LTV and V(P) × LT. A liquidity position falls more slowly, because part of it is USDG. So the lines are a larger share of its value, and that share changes as the price moves inside your range. It is computed on every check, not fixed at deposit. The result: an LP position becomes liquidatable at the same fall in the Stock Token's price as a position in the plain Stock Token market.

On NVDA/USDG LP the borrowing line is your position's value with NVDA at 64.8% of its price (0.60 × 1.08), divided by 1.08. The liquidation line uses 70.2% (0.65 × 1.08).

Two caps sit on top, per market: the liquidation line is never more than 90% of the position's value, and the borrowing line never more than 85%.

Supply

1. Create or pick a position in a listed pool, on Uniswap.
2. Send the NFT to the market's lending pool. The first time, this also creates your Position contract, which belongs to you alone, and moves the NFT into it in the same transaction. After that you can also send an NFT to your Position directly.
3. Fees the position earned before you deposited are paid to you in full, with no cut.

A Position holds up to 3 NFTs in the same market at launch. The protocol Safe can change that limit up to 15, the most the contract allows. Every NFT must be from a listed pool and hold some liquidity.

There is also a minimum value per NFT, at oracle prices. An NFT worth less than it adds no borrowing power, but it still counts as collateral for liquidation. The minimum is 0 at launch, so every NFT counts.

Borrow

Borrowing works as in any market: you borrow USDG up to the borrowing line, pay interest continuously, and repay in USDG from your wallet. The same borrow fees apply. Borrowing needs fresh prices for both the Stock Token and USDG, so it pauses while the stock market is closed.

Manage

You stay in control of every NFT in your Position:

Whenever fees leave an NFT, the protocol's cut is taken first (see fees). Fees are collected before every liquidity change, so the cut is only ever taken from fees, never from your liquidity.

When a market is paused, liquidity cannot be removed, NFTs cannot be withdrawn and ranges cannot be moved.

Rebalancing

To rebalance is to move one NFT to a new price range in a single transaction: collect its fees, remove all its liquidity, swap to the new range's ratio, mint a new NFT in the same pool, and check that the position is still healthy. The new NFT takes the old one's place. The emptied old NFT, and any tokens that did not fit the new range, go back to you.

A rebalance is allowed only when:

• prices are fresh;
• the pool's price is within the market's 1% of the oracle, and within the slippage you allow;
• the slippage you allow is at most 1.5%, the contract's limit;
• that NFT has not been rebalanced in the last hour.

Rebalance agents

You can let up to two addresses rebalance for you, such as an agent you run. They can call rebalance and nothing else: they cannot withdraw, borrow or collect fees. You set their limits:

• the most slippage they may accept on each swap;
• the narrowest range they may move into.

Their new range must also contain the pool's current price. Setting an address to zero removes it.

A market can also name a Paboxo executor, an agent run by the Paboxo team. When that address rebalances your position, it charges a fee on the value it moves (see fees). An address you appoint yourself pays nothing to Paboxo. At block 108993261 neither market has a Paboxo executor set.

Liquidation

LP positions follow the same liquidation rules as every market: the same close factor, the same $5 dust floor, and the same pause while prices are not fresh.

What the liquidator receives is different. A liquidation takes the same fraction of every NFT in your Position. That liquidity is removed, and the liquidator receives the two tokens it pays out. The fraction is sized so that what they receive is worth the debt they repaid × (1 + bonus) at oracle prices. It is measured on what the liquidity pays out at the pool's current price, so moving the pool away from the oracle does not hand the liquidator more than that.

Before any liquidity is taken, each NFT's uncollected fees are paid to you, less the protocol's cut. The liquidator receives liquidity only.

When a liquidation takes the whole position, every NFT is emptied and goes back to you, so you keep the NFTs themselves. None of the seizure goes to the protocol: the protocol's share of liquidations is 0% on both markets.

Fees

The fee cut can be raised to at most 50% of the fees, and the rebalance fee to at most 0.5%. Both limits are fixed in the contract.

Parameters

Read from mainnet on 8 November 2026 (block 108993261). Every one of these is a setting the protocol Safe can change, within the contract limits noted.

The LTV, threshold, bonus and interest curve match the plain NVDA/USDG and SPY/USDG markets. The NFT count and minimum value are the launch settings of the multi-NFT upgrade, not part of the block read above; the contract limits are 15 NFTs and $1,000. The 1.5% slippage limit is a constant in the contract.

Risks

An LP market carries the risks of providing liquidity on top of the risks of borrowing. Read them with the protocol-wide risks.

• Impermanent loss. As the price moves, your position holds more of the token that fell and less of the one that rose. It can be worth less than simply holding both tokens.
• Leaving your range. When the price leaves your range, the position holds only one token and earns no fees until the price returns or you move the range. Below the range it is all Stock Token, and it falls with the Stock Token's price.
• Your borrowing power moves without you. The lines are recomputed from the oracle on every check, so how much you can borrow changes as the price moves inside your range.
• Oracle and pool can disagree. Your position is valued at the oracle, but the tokens leave it at the pool's price. If the two diverge, what you get when you remove liquidity, and what a liquidator takes, follow the pool.
• Market hours. Borrowing, rebalancing, and removing liquidity or withdrawing an NFT while you have debt all need fresh prices. They pause while the stock market is closed, when a feed is stale, and when a feed's issuer pauses it. Liquidation pauses with them.
• Issuer pauses. If the Stock Token or USDG itself is paused by its issuer, a liquidation that would move it cannot run.
• Rebalancing costs. Each rebalance swaps in the pool. You can lose up to the slippage allowed, plus the pool's fee. An agent you appoint can move your position into a range that earns less or loses more. If its key is stolen, the thief has the same power until you remove it.
• Third parties. Uniswap and its pools are run by others. A fault or change on their side can stop you from managing or withdrawing a position. A pool can also be delisted for new deposits.
• Smart contract risk. The LP contracts are new, and most of them are upgradeable, like the rest of the protocol. A bug in them, in Uniswap, or in how the two interact can lose funds.
• Bad debt is shared. If a liquidation does not cover a debt, the shortfall falls on the Earn vault, which lends to every market, the LP markets included.