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Stormbit
Option-underwritten credit

Loans that
never liquidate.

Every loan is hedged the moment it opens, so it can't be liquidated. You don't pay cash interest, you cap your upside, and the tighter the cap the closer the rate gets to 0%. Lenders earn that capped upside as priced premium.

The insight

EveryDeFiloanyou'vetakenhadthesamefineprint:behave,orbeliquidated.Stormbithedgestheloanatorigination,soliquidationbecomesimpossiblebyconstruction.

A put below sets the floor that protects the lender. A short call above sets the cap whose premium funds the whole trade. It's been used on trading desks for decades. It's called a collar.

The structure

The call sold on your collateral pays for the put, drives the borrower's rate toward 0%, and funds the lender's yield, priced at trade entry, not promised from future revenue.

CAP · call strike · gains above are soldthis is what pays for everything belowFLOOR · put strike · collateral can't settle lowerlender's covered, so you're never liquidatedspot at originationloan settles at expiry
The honest part

Nobody lends for free. These are live signed quotes from the testnet desk: tighten the cap and the real rate falls toward 0%, because you hand it the upside above the cap. Loosen it and the price comes back.

Your collar

Pick an expiry, drag the cap, see what 0% costs.

Settlement expiry
Cap your upside at-
tighter · toward 0%wider · desk stops offering
-
borrow rate · cap -

Pricing live from the testnet desk…

You keep vs the desk
you keepthe desk

Live signed quotes from the testnet desk. 0% only holds at the tight caps where the call you sell covers the carry, paid in upside, never in cash.

Our product

Every funded loan, its floor, its cap, and the pool APY it feeds, settling on-chain. No hidden mechanics, no promised numbers. Move your cursor over the terminal.

SB-01COLLAR TERMINAL
ILLUSTRATIVE
Live
Collar Book
13.2%
Weighted APY
04
Active loans
12
Cycles
0%
MIN BORROWER
APR
POSITIONFLOORCAPPOOL APY
WBTC · 30d$58,400+18%13.2%
WETH · 7d$3,120+9%11.8%
WBTC · 90d$54,900+31%15.6%
WETH · 30d$2,980+16%12.4%
PREMIUM ACCRUAL
12 settlement cycles
Loan lifecycle

The collar is written once, at origination, then the position rides to expiry, untouched by margin calls.

  1. 01

    Lender deposits

    USDC enters a tenor vault, 7, 30 or 90 days, and mints soUSD.

  2. 02

    Borrower gets a quote

    Posts BTC or ETH, picks an expiry, sees loan amount and cap before signing.

  3. 03

    The collar is written

    A put (floor) and short call (cap) execute before any USDC moves. Liquidation becomes impossible.

  4. 04

    Nothing happens

    No monitoring, no margin calls. The position rides to expiry, whatever the market does.

  5. 05

    Settlement

    Repay and reclaim, or walk away, the put settles, collateral goes to auction. Lender protected to the floor.

By the numbers
10–16%
Target APY for lenders
from 0%
Borrower APR
0
Liquidations, by design
Get started

The old fine print read “behave, or be liquidated.” Ours is one line, stated at quote time and never buried in a docs page: the upside above your cap is the desk's. No bots, no margin calls, no surprises.

BORROWEARNDEALSDESK