How is liquidation-free borrowing possible?

When you deposit collateral, lenders simultaneously sell you a put option at your loan's strike price. This gives you the right — but not the obligation — to sell your collateral at that price. If the market drops, you can walk away, keeping your loan while the lender keeps your collateral. No forced liquidations, ever.

What happens if my collateral value drops?

Nothing happens to your position. Unlike traditional lending where a price drop triggers liquidation, Zend's options-based structure means you're protected. You can choose to repay and reclaim your collateral, or walk away if it's worth less than your loan.

What collateral types are supported?

Zend currently supports ETH and cbBTC as collateral. We're working on expanding to additional assets based on liquidity and demand.

How are loan terms determined?

When you submit a loan request, market makers compete in a 30-second sealed-bid auction to offer you the best rate. You then accept the best offer — locking in your strike price, loan amount, and expiry date.

Why do some strikes show "Premium waived" at ~5.7% APR while others are 30–50%?

Long-dated, deep-OTM, retail-sized loans qualify for a Zend-funded promo rate that zeroes the option premium and fixes the borrow rate at 5.68%. The strike picker already reflects this in the displayed APR — eligible rows show a green "Premium waived at fill" badge. A loan qualifies when all of the following are true: • Expiry is > 90 days away • Strike is < 50% of the underlying's current price • Loan size is ≤ $250,000 per borrower If any condition isn't met, the strike falls back to standard market-maker pricing, which includes the option premium and produces the higher APRs you see on higher-LTV or shorter-dated strikes.

Is Zend non-custodial?

Yes. Your collateral is held in audited smart contracts on Base. Neither Zend nor any market maker can access your collateral directly. You retain full control through your wallet at all times.

What blockchain is Zend built on?

Zend is deployed on Base (chain ID 8453), an Ethereum L2 built by Coinbase. Base offers low transaction fees, fast finality, and deep EVM compatibility.

Non-liquidatable borrowing on Base

Borrow without the panic.

ZendFi is non-liquidatable lending on Base. Deposit ETH or cbBTC, receive USDC against a fixed-term call option, and at expiry either repay the loan to reclaim your collateral or walk away keeping the USDC. No margin calls, no liquidation bots, no forced sales — your downside is set the moment you borrow.

Borrow Explore collar

forced liquidations

~6%^*

sample fixed APR

30s

lender auction

Promo rate for loans > 90 days, < 50% LTV, ≤ $250k. See FAQ.

Borrow card

Fixed-term USDC

Live

DepositETH

0.50$1,920.00

Receive

1,000

USDC

Term

days

Best quote

5.91%

Get Quote

Three outcomes

A loan that ends when you said it would.

ZendFi turns the liquidation problem into an expiry decision. You know the repayment amount, the protection level, and the upside tradeoff before signing.

Walk away

Market falls below the strike.

Keep the USDC and let the option settle. Your downside is known before you borrow.

Repay

Market stays in range.

Repay the fixed amount at maturity and reclaim your collateral. No rate drift while you wait.

Collar

Trade upside for 0% interest.

Choose a cap, receive USDC, and keep the middle outcome. Collar is live in the app.

Want the exact quote? Open the card, choose collateral, and see the term sheet before you connect.

See your quote

How it works

From quote to expiry in four steps.

Pick collateral

ETH or cbBTC.

Lock terms

Strike, expiry, repayment.

Run auction

Lenders compete.

Choose

Repay or walk away.

Normal vs collar

Pick the risk shape that fits the trade.

Normal borrow is for keeping upside with fixed APR. Collar is for reducing interest to zero by setting an upside cap.

Question

ZendFi

Traditional lending

If price drops

ZendFiNo forced sale. Choose at expiry.

TraditionalHealth factor falls; liquidation can trigger.

Repayment

ZendFiFixed before signing.

TraditionalVariable rate can move while the loan is open.

Upside

ZendFiNormal keeps upside. Collar can trade upside for 0% interest.

TraditionalUpside stays, but liquidation risk remains.

Action needed

ZendFiOne expiry decision.

TraditionalMonitor collateral ratio continuously.

Normal borrow

Keep upside, lock APR.

Collar borrow

Trade capped upside for 0% interest.

FAQ

Frequently asked questions

Everything you need to know about liquidation-free borrowing.

Open ZendFi

Get the quote first.
Sign only when the numbers work.

Compare normal and collar terms, then connect your wallet when you are ready to submit.

Borrow Open collar

No margin callsFixed term sheetETH and cbBTCBase mainnet