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Open a trove

A trove is your loan against a single collateral type. You lock collateral into the trove, mint RD against it, and pay interest while it's open. You can adjust, repay, or close it at any time.

Before you start​

You need three things:

  1. The collateral. Each branch accepts exactly one ERC-20 — WETH, wstETH, WBTC, rETH, weETH, tBTC, sUSDS, or PAXG (see Collaterals for all 8, with addresses and terms). Native ETH must be wrapped first.
  2. Enough of it. Every trove must have at least 2,000 RD total debt at the time it's opened. 1,800 of that is net debt that's yours to use; 200 is the gas compensation reserve held by the protocol and refunded if you close cleanly (it's paid out to the liquidator if you don't).
  3. A collateral ratio above the branch MCR. MCR is a per-branch parameter — 110% on WETH, up to 130% on the BTC and gold branches; check the Collaterals table for the branch you're opening on. At 110% MCR, for every $1.10 of collateral you can mint up to $1.00 of RD net debt.

Pick a branch and whether to enable Redemption Shield​

Each branch has its own MCR, oracle, Stability Pool, and collateral rate — see Collaterals for the full per-branch table.

You can choose whether to enable Redemption Shield when you open:

  • Redemption Shield enabled opts your trove out of the normal redemption queue. It carries a higher borrow rate (the shield premium). See Redemption shield for the trade-off.
  • Redemption Shield disabled is the default. It carries the lower, base rate, and your trove remains in the redemption queue.

You can toggle shield later (see Adjust, repay, or close).

Opening​

You deposit collateral, choose how much RD to mint (your net debt, minimum 1,800 RD), and optionally enable Redemption Shield. First approve the branch to pull your collateral. On open the protocol:

  1. Takes your collateral into the branch's pool.
  2. Mints your RD to you, plus the 200 RD reserve into the gas pool.
  3. Registers your trove and its Redemption Shield setting.

If the result would put your ICR below MCR — or, in normal mode, push branch TCR below CCR — the call reverts and nothing happens.

Developer reference: Borrowing operations for the exact open call, its parameters and hints, and the revert reasons.

What you pay​

  • Borrow interest, continuously, at the branch's current borrow rate. The rate moves with branch utilization and the controller. See Borrow rates.
  • The shield premium, if you opened with Redemption Shield enabled. It is added on top of the borrow rate.
  • No one-time issuance fee. There's no upfront fee on borrowing. Fees accrue continuously instead.

What you should check after​

  • ICR: must stay above MCR. Aim for healthy buffer; collateral price can move.
  • Redemption-queue position: at low ICR, you're at the top of the redemption queue. If you don't want that, either shield or top up collateral.
  • Branch TCR: if branch TCR is near CCR, your borrow may have triggered or be near triggering recovery-mode rules. See Liquidations & Recovery Mode.

How fast a branch can grow: the issuance quota​

Each branch has an issuance quota — a token bucket that limits how much new RD it can mint per day:

  • Capacity refills at 50% of the branch's target debt per day.
  • Unused capacity pools up to a 12-hour burst reserve — about 25% of target debt mintable at once.
  • Opening or increasing debt draws from the bucket; when it's empty the transaction reverts — wait for the refill.
  • Repayments and Stability-Pool offset burns refund the bucket, so the quota limits net inflow — a busy branch with two-way flow doesn't get stuck.
  • The bucket starts empty when the 14-day bootstrap ends and is frozen if the branch shuts down.

The point: no branch can balloon faster than the utilization controllers can see and reprice. Full mechanics are in Rates vs. utilization; read live capacity via the developer reference.

Recovery mode opens​

Which check applies depends on the branch's TCR at the moment you open. In both cases your ICR must first be at or above MCR:

  • Normal mode (branch TCR ≥ CCR): the resulting branch TCR must stay at or above CCR. An open that would push TCR below CCR reverts.
  • Recovery mode (branch TCR already below CCR): your own ICR must be at or above CCR, not just MCR. There is no separate "don't lower TCR" check here — requiring ICR ≥ CCR (above the sub-CCR TCR) already means the open can only raise TCR.

Either way, opens get harder when the branch is stressed. Repaying existing troves and waiting for TCR to recover is the usual workaround.

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