How Backed works

Overview

Backed is two sides of one pool. Lenders deposit USDG and hold bUSDG, a share whose value grows with the interest borrowers pay. Borrowers lock a listed memecoin and take a USDG loan against it — up to 20% of its value — without selling. Repay and the tokens come back.

Quick start

1. Connect a wallet on Robinhood Chain (chain 4663) with a little ETH for gas. The site asks to switch if you are elsewhere.
2. To lend, open Lend, enter USDG and deposit. You receive bUSDG at the current rate.
3. To borrow, open Borrow, pick a token, enter the collateral and the loan. The preview shows the fee, the health factor and the liquidation price before you sign.
4. Approve exactly the amount the transaction needs, then confirm it. USDG lands in your wallet in the same block.
5. Watch the loan on the Dashboard; add collateral or repay from there.

Borrowing

A position is one loan against one token per wallet. When you open it the contract pulls the collateral, values it at the oracle price and checks the loan against the token’s loan-to-value: 20% by default, 25% if you burn $BACK. The USDG is sent to you minus the origination fee.

What you can do afterwards

• Repay part — lowers the debt, keeps the collateral locked.
• Repay all — the contract returns every token in the same transaction. “Everything” covers interest accrued up to the very block.
• Add collateral — raises the health factor; works even while the token is paused for new loans.

Interest is simple and accrues every second against a global index, so the debt you see is the debt you pay, with no compounding surprises.

Lending

Deposits mint bUSDG at the pool’s exchange rate, which starts at 1 and only moves up as interest is paid. Redeeming burns bUSDG and pays USDG at the current rate. Withdrawals come from the USDG that is not lent out; if the pool is highly utilised, the remainder waits for repayments — and the rate in that band is set high precisely so they arrive.

The pool keeps its own accounting of USDG instead of trusting its balance, and mints against virtual shares, so a first depositor cannot inflate the share price and a stray transfer cannot move it.

Health & liquidations

The health factor is collateral value × 28% ÷ debt. At 1.00 the loan equals 28% of the collateral and anyone may liquidate. A loan opened at the full 20% LTV starts at 1.40, which means the price can fall about 29% before it is at risk.

A liquidator repays USDG and receives collateral worth 108% of it: 5% is their bonus, 3% they pay on top into the insurance fund. Liquidations can be partial; once the debt is gone, whatever collateral is left goes back to the borrower. If the collateral runs out before the debt does, the owner clears the remainder from the insurance fund first and the pool absorbs the rest.

Price oracle

Prices come from each token’s Uniswap pool on Robinhood Chain (v3 or v4), sampled every minute by the protocol’s oracle service. Pools quoted in ETH are converted to dollars with the Chainlink ETH/USD feed. Every 5 minutes it pushes, for each token, the lower of the current spot and the 30-minute average. The contract refuses any push that raises a price by more than 25% at once, and refuses to open or liquidate a loan on a price older than 30 minutes.

The effect: a pump reaches the pool slowly, a dump reaches it immediately, and a leaked oracle key cannot mark collateral up in one move.

Rates & fees

Lender APY equals the borrow APR multiplied by the share of the pool lent out, because all interest goes to lenders. The protocol’s only revenue is the 0.5% origination fee, and it is waived for boosted loans.

$BACK token

$BACK launches on Pons, the launchpad on Robinhood Chain: it trades against ETH and graduates to a Uniswap v4 pool, with a tax on swaps. Inside Backed it has one job: burn 50,000 $BACK when you open a loan and the loan gets 5 more points of LTV and no origination fee. The tokens go to the dead address in the same transaction that opens the loan — plain transfers carry no tax, so the burn costs exactly the tokens.

The burn size and the token address are set by the pool owner once the token exists; until then the checkbox on the borrow screen stays disabled and the site shows “Launching soon”. The address appears here, in the header and in the footer the moment it is set.

Calculator

Move the sliders; the arithmetic is the contract’s.

Parameters

Contracts

Verified source lives in the contracts repository; the addresses below are what this site is configured with.

FAQ