Using CredX
Borrowing USDG
A limit that stays open, a rate nobody sets by hand, and no repayment schedule. Here is exactly what you are agreeing to.
Your credit line is revolving. Interest accrues only on what you have actually drawn, and an untouched limit costs you nothing.
It is a credit line, not a loan#
Most lending protocols make you borrow in discrete transactions. CredX opens a limit once, when you deposit, and lets you draw against it whenever you want — $500 for a bill this week, $40,000 for a deal next month, without re-applying or re-approving anything.
- No origination fee on variable-rate draws.
- No minimum draw, no maximum number of draws.
- No repayment schedule and no prepayment penalty.
- The limit moves with your collateral value, up and down.
An open limit is not debt
If you deposit $100,000 and open a $58,000 limit but never draw on it, your interest is $0.00, your health factor is infinite, and you cannot be liquidated. Many people use CredX this way — as standby liquidity that costs nothing until the day it is needed.
What the rate is and where it comes from#
Nobody quotes you a rate. It is a pure function of utilisation — how much of the pool’s USDG is currently lent out. Low utilisation means idle dollars and a cheap rate. High utilisation means the pool is nearly empty and the rate climbs steeply to bring liquidity back.
U ≤ 90%: rate = (U ÷ 90%) × 5.5% U > 90%: rate = 5.5% + ((U − 90%) ÷ 10%) × 60%
The 90% point is the kink. Below it, the rate rises gently from 0% to 5.5%. Above it, it accelerates hard — by 95% utilisation you are paying 35.5%.
| Utilisation | Borrow APR | Supply APY | What it means |
|---|---|---|---|
| 30% | 1.83% | 0.47% | Pool is mostly idle; borrowing is cheap |
| 68% | 4.17% | 2.45% | Where the pool sits today |
| 90% | 5.50% | 4.21% | The kink — efficient, still healthy |
| 95% | 35.50% | 28.66% | Deliberately painful; repay or supply |
| 99% | 59.50% | 50.06% | Emergency territory |
The rate can move against you
A variable rate is variable in both directions. If utilisation spikes past the kink while you have a large balance drawn, your cost can multiply within hours. Fixed-term draws exist precisely to remove that exposure.
Variable or fixed term#
| Type | Rate today | Premium | Origination | Best for |
|---|---|---|---|---|
| Variable | 4.17% | — | 0 bps | Short or uncertain horizons; repaying opportunistically |
| 7-day fixed | 4.57% | +0.40% | 5 bps | Bridging a known short gap |
| 30-day fixed | 5.27% | +1.10% | 10 bps | A month of certainty on the cost |
| 90-day fixed | 6.77% | +2.60% | 20 bps | Budgeting a quarter with no rate surprise |
A fixed term locks the rate for its whole duration. If utilisation spikes, you are insulated. If it falls, you overpay — that is the trade, and the duration premium is the price of the insurance.
Fixed draws can be closed early
There is no penalty for repaying a term draw before maturity. You forfeit nothing except the remaining benefit of the locked rate. At maturity, an unpaid fixed draw rolls onto the variable rate rather than being force-closed.
Repayment#
- Partial. Repay any amount at any time. Every dollar repaid lifts your health factor immediately.
- Full. Clears the debt and unlocks collateral in the same transaction.
- Auto-repay. Opt in and the protocol sweeps idle USDG from your wallet against the debt whenever health drops below 1.6. Free, and far cheaper than being liquidated.
- Self-liquidation. Instruct the protocol to sell part of your own collateral and repay with the proceeds — 0.30% swap fee, no liquidator bonus, no penalty. Covered in Liquidation & deleveraging.
What it actually costs#
$30,000 drawn against a $100,000 basket, variable rate
Borrow rate
Interest, 1 month
Interest, 6 months
Interest, 12 months
Origination fee
Prepayment penalty
Interest accrues by the second and compounds hourly. The APY on a 4.17% APR compounded hourly is 4.26%.
Borrow limits beyond your own#
Two things can cap you below your personal credit limit:
- Market-hours borrow cap. Outside US trading hours the protocol restricts new borrowing — down to 25% of normal over a weekend. Repayment is never restricted. See Market hours & oracles.
- Pool liquidity. You cannot borrow dollars that are not there. At high utilisation, large draws may need to wait for lenders or repayments.
How much should you actually draw?#
Drawing to the maximum limit puts you roughly 13% of collateral movement away from trouble. Drawing half of it roughly doubles that room.
| Share of limit drawn | Health factor | Basket can fall |
|---|---|---|
| 25% | 4.73 | 79% |
| 50% | 2.37 | 58% |
| 75% | 1.58 | 37% |
| 90% | 1.31 | 24% |
| 100% | 1.18 | 15% |
Open the borrow screen
Live health preview as you move the amount, both rate types, and the self-liquidation control.