2025-12-29 18:24:50

Here's what makes this particularly interesting:

If borrowers fail to repay their loans, their tokens remain permanently locked—meaning they lose all ability to liquidate positions.

This creates two distinct outcomes:

1) **Successful repayment scenario**: A user deploys the protocol, takes a loan, generates returns with borrowed capital, and repays the obligation. This strengthens the protocol treasury while maintaining healthy tokenomics.

2) **Default scenario**: Locked tokens serve as economic punishment and collateral protection, naturally incentivizing timely repayment and disciplining the borrowing behavior across the ecosystem.

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GamefiGreenie

· 10h ago

Hmm... Permanent locking sounds pretty harsh, it's like a gambler's final ultimatum.

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NFTArchaeologist

· 11h ago

Bro, this design is pretty harsh. It directly freezes your token permanently, which basically makes it impossible for you to turn things around.

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AirdropHarvester

· 11h ago

Wow, this penalty mechanism is a bit harsh—does it mean permanent lockout upon default?

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RektDetective

· 11h ago

Hmm... permanently locking the position is a ruthless move, directly cutting off the escape route.

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liquidation_surfer

· 11h ago

Wow, permanently locking tokens? Isn't that essentially a form of destruction? It's actually pretty harsh for the ecosystem.

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Layer2Observer

· 11h ago

Hmm... this permanent lock-in mechanism sounds very strict, but I have to ask—during extreme market volatility, do borrowers really have enough time to complete arbitrage? Or is this essentially a gamble on stability?

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