Collar Protocol

Collar is a liquidation-free borrowing solution built to solve the liquidation problem and DeFi’s borrowing trilemma (stability of borrowed assets, liquidation of collateral, high LTV). It does this by helping connect borrowers with marketmakers via an on-chain request-for-quote (RFQ) process, resulting in a “COLlaborative Lending ARrangement” (Collar). This arrangement allows borrowers to forego upside exposure above a ceiling temporarily in order to protect their downside below some floor price, below which the borrower can always walk away with their stablecoin loan.