Loan Protocol is a decentralized, non-custodial lending platform connecting depositors (lenders) and borrowers. Depositors earn interest by lending tokens, while borrowers pay interest to access those tokens. Each market has a Collateral Factor determining the maximum loan amount relative to deposited collateral (e.g., 70%). Borrowing $B requires $C in collateral. Staking LOAN on ProtonLoan.com converts it to sLOAN, earning interest and providing governance voting rights (e.g., coin listings). Unstaking converts sLOAN back to LOAN. Governance decisions include: token collateralization, interest rate curves, and other protocol parameters.
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