SEXTANT

Collateral

Borrow

A Vernier is a plain ERC-20, so any lending market can take it. Whether one should is a different question, and this page is the honest version of the answer.

What helps

  • Liquidating in kind. A Vernier's in-kind claim needs no price, so a liquidator taking the underlying is exposed to the market rather than to an observation.
  • Thresholds set from the pool's own depth rather than from a round number.
  • Publishing the observation next to the number, which nobody in this category does.

What does not

  • ×A staleness check. A pool price is never stale — it is always exactly current and always exactly wrong for any size but zero.
  • ×A spot read at liquidation time. That is the one moment the pool is most likely to have just been traded through.
  • ×Averaging several pools that arbitrage against each other. The average of two correlated errors is a correlated error.

Nothing in this repository lends anything. There is no borrow market, no interest-rate model and no liquidation engine — see the state table. This page exists because the category's borrow page always exists, and always says the collateral is liquid without saying who has to price it.