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.