Non-Collateral Loan

Traditional DeFi lending protocols (e.g. Aave, Compound) require over-collateralization, meaning you must deposit more than you borrow, limiting access to capital for most users.

Some protocols (e.g. Maple, TrueFi) have attempted non-collateral lending, however they reverted back to centralized, trust-based systems involving whitelists, credit scores, or off-chain legal agreements.

Firyx revolutionizes this model. Instead of giving borrowers cash-like assets they could run away with, Firyx issues borrowed funds directly as liquidity provider (LP) shares within a specific, high-yield strategy.

This achieves two key goals:

• Safety for Lenders: The capital is deployed directly into a yield-generating position and never leaves the protocol's control. This effectively eliminates the risk of borrower default or misuse of funds.

• Access for Borrowers: Since the loan is secured by the productive LP asset it creates, borrowers do not need upfront collateral, credit scores, or special permissions. This provides instant access to capital for yield farming.

Firyx achieves this by introducing three main concepts: Loan Position, Loan Slot and Deposit Slot.