Credit accounts and CDP Loans are live on Rujira!

We are very excited to announce that Credit Accounts are now live on Mainnet, along with our first debt product: CDP Loans.

This has been months in the making, and it is a long-anticipated release for the community, as it also sets the ground for the return of our beloved Orca, or RUJI Liquidation. 🐳

Let’s dive in. 👇

Credit Accounts are one of the biggest things we have shipped so far. They sit at the core of many upcoming products, including CDP loans, our BTC-backed stablecoin, spot margin trading, and Perps v2.

With Credit accounts, you have a high degree of flexibility in how you manage debt and collateral, all fully integrated with the rest of the Rujira ecosystem and fully decentralized.

The first application of Credit Accounts is CDP Loans (Collateralized Debt Position loans). You can now put up your native L1 assets such as BTC, BCH, XRP or ETH as collateral and borrow another asset against them.

If the value of your collateral drops too far and passes the liquidation threshold, a portion of it will be liquidated and sold on the market to repay your debt.

To learn more about this, a good place to start is the Spaces from earlier today👇

The use cases for this are endless.

Are you a BTC miner who needs cash to cover operating costs but does not want to sell BTC in the current market? Put up your BTC as collateral, borrow stablecoins to cover expenses, and repay the loan once the market improves.

Holding a large stack of XRP and feeling incredibly bullish? Put up your XRP as collateral, borrow stablecoins to buy more XRP, and loop it to a Loan-to-Value ratio you are comfortable with.

The roll-out of CDP Loans will happen in phases. We have successfully completed the audit for Credit Accounts with Halborn, but to be extra safe we are running a bug bounty competition with @code4rena and inviting anyone to review and test the code for a chance to earn a share of the $40k prize.

This bounty competition will run until January 15th. Until then, we have temporarily set low borrowing caps of around $10k, which we will increase once we are confident everything is safe and working as intended.

This first phase of CDP loans is a soft launch with limited assets and low borrow caps so that our community can try it out early, and it gives us a great opportunity to gather feedback. The assets available for now are BTC, ETH, XRP, BCH, USDC, and USDT.

We have already received valuable feedback from the community about the UI and UX, and we will roll out improvements over the coming weeks, so you can expect many upgrades.

The RUJI Liquidations page will come at a later point, but you can already start bidding on liquidations via RUJI Trade by opening tracking orders at a discount to the oracle price.

Any liquidations occurring from the CDP loans are sold on the RUJI Trade orderbook via market orders, and by placing a buy tracking order, for example 10% below the oracle price, you can receive 10% discounted BTC whenever a liquidation happens and the price drops enough.

To celebrate this special moment, we are offering a small prize for the person with the first ever liquidation on Rujira, who will win 100 RUJI. If you want a chance to win, make sure to try it out and open your first position.

This will be followed by a larger competition with a reward of 1000 RUJI once we are at full force, and the details will be announced at a later time.

The launch of Credit Accounts is a major step in getting the flywheel turning, and we cannot wait to introduce the many debt products we have been planning.

We are just as excited to see the strategies that projects like AutoRujira and the wider community will build to make the most of it.

With borrowing now live, next up is RUJI Trade v1.1, which will introduce multiple strategies, three new order types, and a bunch of optimizations.