Borrowing

A lending market lets you deposit one token as collateral and borrow a different one against it. Leverage is what happens when you take that borrowed token, buy more collateral with it, and repeat, which only pays while the collateral earns more than the debt costs. Where it does not, the loop loses money on every turn.

A market is a place to borrowwhen its collateral and its debt are different assets, or when the collateral earns nothing to loop: you want the loan token, you have something to pledge, and the only question that matters is what the debt costs. DeVOLT files those markets under Borrow instead of presenting them as worse versions of the loops. Which page a market is on follows what the pair is, never today’s rates, so a market does not move between pages as rates change.

One view adds to that without taking anything away. A market here whose collateral and debt are different assets is also listed on the Leverage page, beside the loops, for as long as it pays at the leverage quoted, saying what the position is long, with the price move that would liquidate it in its detail. It stays on this page whatever its rates do.

The question each page answers

Leverage

Is this a yield loop, where the collateral earns on the same asset you borrow? That page lists every loop, the ones that pay at current rates first, and sorts by what the loop returns.

Borrow

What does the debt cost? The loop is beside the point here, so that page sorts by the borrow rate, cheapest first, because a cost is better when it is smaller.

All

Every market DeVOLT reads, in one list, including the ones that fit neither description.

Fixed-yield collateral is never a place to borrow

A Pendle principal token is bought for its fixed yield, and the only reason it sits in a lending market is to be levered. Nobody holds one in order to borrow against it, so it never appears under Borrow, whatever its numbers say. It is listed under Leverage like every other loop, and when its fixed rate is under the cost of the debt it sorts after the loops that pay.

What the borrow rate already accounts for

Some venues pay a reward to people who borrow, which offsets part of the interest. Where DeVOLT can read that reward it subtracts it, so the rate shown is what borrowing actually costs you rather than the headline interest rate.

Where it cannot read the reward, it subtracts nothing. That makes the debt look more expensive than it is, which pushes markets out of borrowing rather than into it, which is the safe direction to be wrong in. The page says so when a chain’s rewards could not be read, rather than quietly showing you a worse number.

Starting from what you want to borrow

The markets table is organised by what you post. A borrower starts from the other end: you already know the token you need, and the question is where it is cheapest and what you have to pledge to get it. The Borrow page asks it that way round. It opens with one chip per loan asset, each carrying how many markets lend that token and the cheapest rate any of them is offering, and picking one narrows the table underneath to that token alone.

Choosing an asset also states the spread: the cheapest rate on offer, the dearest, how far apart they are, how many chains and venues lend it, the deepest single market, and everything the book will accept as collateral for it. The spread is the part worth reading. One number tells you what a good rate looks like today; the range tells you whether the row you were about to take is one.

Markets that fit neither

Where DeVOLT has not recorded what a token is counted in, or whether it earns anything, it cannot say what the market is for yet. Those markets are listed on both pages rather than on neither, and each one is named in the audit until its token is recorded. A loop whose collateral yield has simply not been measured yet is different: it is a loop, it is listed under Leverage, and its row says the yield is not measured yet in place of a return.

Markets that cannot be borrowed against at all

A few markets publish a borrowing limit of zero against their collateral. That is a measured fact, not a gap: the collateral cannot secure a loan there, so the market is neither a place to lever nor a place to borrow. Those sit in All only, which is the reason All still exists.