Borrow

Summary

Boost paired side-by-side with Borrow enables a powerful saving experience. When borrow is called, a CDP-based loan is created by routing collateral to Compound for a USDC loan, and using that USDC to mint TUSD which is ultimately delivered to end users. On the opposite side, when repay is called, the position is unwound. Users may initially deposit wrapped BTC or ETH and earn claimable TORQ rewards on top.

Compound V3

Compound V3, popularly known as the Comet deployment which isolates risk across markets and further improves capital efficiency through optimized reward structures, is integrated with Torque USD. This enables an improved borrowing experience through best-in-class loan rates as TORQ accrues to users.

TUSDEngine

The TUSDEngine is responsible for minting, burning, and liquidating positions related to Torque USD. Functions are called by users and related ecosystem contracts in a public fashion. It is a fork of the Maker DAO DSS system and mandated to maintain peg at $1.00 for mint and burn via Chainlink oracle. The price of Torque USD on secondary markets generally remains stable as liquidity is concentrated but may fluctuate depending on market conditions. Thus, in the event secondary markets experience a depeg event, users are incentivized to purchase it and redeem at the TUSDEngine for $1.00 of backing assets.