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Borrow offer types

There are two ways to initiate a fixed-rate borrow position: take at the market rate or post a limit offer. Taking at the market rate fills immediately at the best available rate; a limit offer posts a target rate and waits for a match.

Borrow at the market rate​

Taking at the market rate fills immediately at the best rate currently available. The borrower accepts the rate counterparties are offering at that moment, and the position is initiated right away.

If there is not enough liquidity to fill the full amount, the take fills up to the available liquidity and the remainder is left as a resting sell (borrow) offer.

Borrow limit offers​

A limit offer is a sell (borrow) offer that specifies the rate and term the borrower wants to borrow at. The offer rests until a counterparty (a lender) is willing to take it at that rate or better. A limit offer can be cancelled at any time before it is filled.

Limit offers are useful when a borrower has a specific rate in mind and is comfortable waiting for a match. There is no guarantee of execution if no counterparty takes the offer.

Collateral supplied on fill​

When you post a limit offer, your collateral is not locked upfront. It is supplied onchain only when a counterparty takes the offer, with pro-rata amounts on partial fills.

  • Your collateral remains free to use elsewhere while the offer waits.
  • Collateral is supplied automatically when the offer is taken; no separate transaction is required.

See the supply collateral callback for the contract-level flow.

Example​

Suppose you post a limit offer to borrow 50,000 USDC at 4% fixed for 30 days against 1 cbBTC of collateral:

  • The sell (borrow) offer is posted onchain at 4%. The cbBTC stays in your wallet while the offer waits.
  • When a lender takes the offer at 4% or better, the collateral is supplied and the 50,000 USDC position initiates at the agreed rate and term.
  • If only part of the offer fills, a pro-rata share of collateral is supplied and the remainder stays posted until filled or cancelled.