Weigh the basket,
not the names.
Every margin lender on this chain writes one haircut per stock and adds them up. Seshat writes the margin on the whole portfolio. Names that move together are counted as one weight; names that do not are counted as less. Diversify your collateral, and the same shares borrow more.
Deposit tokenized stocks. Borrow USDG. Lenders earn the interest; the scribe keeps a tenth.
twenty-seven thousand seven hundred twenty-three dollars
Charged name by name, as every other lender does, the same basket would carry a margin of 8,181 (23.6%) and borrow 26,527. Weighed as a basket it borrows 1,195 more.
Prices are read live from the Chainlink feeds. The contracts are not yet deployed on this chain: the balance weighs with the launch calibration, and nothing here can be borrowed until they are.
Market risk does not diversify.
Every name carries a beta to the market. Add ten names and their betas add up; the market can fall and take all ten with it. That part of the margin is charged on the sum, and no basket escapes it.
Idiosyncratic risk does.
Every name also has a volatility of its own, the part that is not the market. Those parts are charged on the root of the sum of squares, which falls as one over the root of the count. Three names that do not move together need less than any one of them.
A liquidation takes a slice of everything.
When an account falls below its line, the liquidator repays part of the debt and takes a pro-rata slice of every name, with a five percent bonus. The basket keeps its shape, so its margin does not climb after the cut. The repayment is capped at what restores health; the rest of the basket stays yours.
The names admitted
Every parameter →What the scribe reads
The price of each name is Chainlink's feed for that token: share price times the issuer's multiplier, so a dividend changes neither the balance nor the value it stands for. The feeds follow the exchange and hold through the night and the weekend; the calendar that says when a print is late is on chain, through 2036.
A late print can hold a position but cannot open one. A dead feed freezes the liquidation of every account that holds its name until it is repointed — a broken oracle must never liquidate anyone.
What is not here
No keeper: a liquidation is a call anyone can make, paid by its bonus. No pause and no emergency withdrawal: the governor can list a name, recalibrate a beta, move a feed, set the rate curve — and cannot touch a position or a lender's dollar. No auction: the market is thinnest exactly when a lot would need to sell.