Debt DAO Docs

Escrowed Token Collateral Operations

Features for managing escrowed token collateral
Whitelisting a new collateral token
Any ERC-20 or ERC-4626 tokens that a Borrower wishes to use as collateral must be whitelisted ('enabled') by the Arbiter.
Borrower adds collateral
A Borrower can at any time deposit whitelisted (enabled) tokens as collateral after which the app updates the collateral ratio.
Collateral Ratio
The ratio of the value of collateral to outstanding debt can be calculated at any time and is visible in the app.
Collateral Value
The latest value of the token collateral deposited by a Borrower (in USD) can be calculated at any time and is visible in the app.
Borrower withdraws collateral
A Borrower can withdraw any amount of token collateral as long as the minimum collateral ratio is maintained. When the debt is fully repaid, the Borrower can withdraw all remaining token collateral.
Borrower transfers token collateral to a new Line of Credit
After a Line has been fully repaid, a Borrower can transfer (roll over) collateral to a new Line without needing to withdraw it and deposit it again.
Arbiter liquidates escrowed token collateral
When certain conditions are fulfilled the status of a Line may change to liquidatable. Only if the status is liquidatable, the Arbiter is programmatically granted the permission to liquidate the collateral on behalf of Lenders.