Known issues

A couple of informative issue that you may encounter

Assets can depeg

If you borrow ETH with WSTETH and WSTETH depegs then you can just not repay the loan, keep the ETH, and the lender will obtain your worthless WSTETH. As a lender, you acknowledge this risk. LTVs are set so that slight depegs won't impact you, but in case of massive the lender can lose money.

All lent assets are consider to be equal in value

On any market, let's say the USD market, all assets to be lent are considered to be equal in value. That is, 1USDC = 1USDT = 1DAI = ... On the ETH market, only ETH can be lent so this is a non issue, but on other markets multiple assets will be listed and each of them are considered to be equal in value.

Dust can be annoying

The way the platform works is the following: All assets are merged, that is for the USD market for instance, all assets (USDC, USDT, etc...) are merged and considered to be 18 decimals. Therefore, if you borrow 100 amount of USDC, you won't be able to withdraw it as it's below USDC's minimal amount - as USDC has only 6 decimals. This 100 amount of USDC is 100*10^-18$ so it's a dust amount, but it can lead to a weird situation if you do dust loans. We don't forbid such loans, we just don't recommend them as they are useless anyway.

As a market makers, you can be matched up to a lot of offers

If as a market maker you spin up an offer, let's say you want to borrow up to 0.1 ETH, then as there is no minimal loan amount you can get a lot of small loans, 10000s of loans of very small amount. In this situation, it's of course very annoying, but you can deposit on the website some ETH and those lenders that want to get back their dust amounts will liquidate themselves the offers and it will use your deposited ETH not your collateral to repay them.

As a market makers, part of the parameters of the loan is up to the market taker

As a market maker, if you spin up a borrow offer for instance, you get to choose a minimal and a maximal duration for the loans. Let's says it's 5days and 1month. In this case, any loans of minimal/maximal duration of a/b with a>=5days and b<=1month and b-a>=1days can be matched up against your offer. The duration b-1>=1days is to let you the time to repay properly the offer without being liquidated. However, it has to be acknowledge that in this example a can be 1month-1day, and in this case the loan is of duration at least 1month-1day. Therefore, when you set a maximal duration quite high, you may end up with loan that have a very long duration. The frontend warns you if you make an offer with a long maximal duration, but it has to be acknowledge that the minimal duration you enter won't be the minimal duration of the loan, the actual minimal duration of the loan is at least this amount but is up to the market taker.