DOCUMENTATION

Borrow USDG against your tokens

Rook is a permissionless lending protocol on Robinhood Chain, built on Morpho Blue. Everything here should be understandable in a few minutes.

Open the app How borrowing works

Introduction

Rook lets you unlock liquidity without selling your tokens. Deposit supported Robinhood Chain assets as collateral and instantly borrow USDG against them. The protocol is non-custodial and permissionless: no sign-ups, no approvals, no intermediaries. Every market runs on Morpho Blue.

How Borrowing Works

Borrowing is overcollateralized: you always deposit more value than you borrow. Each market has a maximum loan-to-value (LTV) that caps how much USDG you can take against your collateral.

1Deposit a supported token into its market. Your collateral is priced by the market's oracle.

2Borrow up to the market's max LTV — e.g. $10,000 of TSLA at 77% LTV lets you borrow up to $7,700 in USDG.

3Repay in part or in full at any time. Interest accrues per block; there are no fixed terms or due dates.

4Withdraw collateral whenever your position stays within its LTV limit.

Collateral

Every supported asset has its own isolated market with its own LTV, liquidation threshold, and oracle. Isolation means a failure in one market — a broken oracle, a collapsing token — can never affect positions in another.

aMax LTV — the most you can borrow against collateral, per market (40–70% today).

bLiquidation threshold — the LTV at which a position becomes liquidatable (55–80% today).

cThe gap between the two is your safety buffer against price moves.

Liquidations

Your health factor is collateral value × liquidation threshold, divided by debt. Above 1.00 you are safe. Below 1.00, anyone can liquidate: they repay part of your debt and receive a matching share of your collateral plus an 8% penalty. Parameters are public and on-chain — no surprises.

health = (collateral × liq_threshold) / debt
liquidatable when health < 1.00

Interest Rates

Borrow rates are set algorithmically by utilization: the more of a market's USDG is borrowed, the higher the rate. Rates adjust continuously and accrue per block. Rook adds no protocol fee on top in V1.

Supported Assets

Collateral: TSLA, SPY, SGOV, QQQ, and SLV — Robinhood’s tokenized stocks and ETFs. Borrow asset: USDG, the stablecoin every live market uses. New collateral is added after passing oracle and liquidity review; see the risk page for every market’s live parameters.

Memecoin Lending (Borrow & Earn)

Rook also runs a second, separate lending product for memecoins: fixed-term, tiered-LTV pawn loans against the top Robinhood Chain memecoins (CASHCAT, PONS, TENDIES and more), paid out in ETH. Unlike the Morpho markets above — perpetual, shared, continuously-accruing-interest isolated markets — a pawn loan is its own position with its own collateral, its own due date, and a flat origination fee instead of ongoing interest. It has two sides: borrowers, and the stakers who fund it.

1Borrow: pick a tier — Express (30% LTV, 2 days, 3% fee), Quick (25% LTV, 3 days, 2% fee), or Standard (20% LTV, 7 days, 1.5% fee).

2Pledge collateral and receive ETH instantly, minus the tier’s origination fee. Repay by the due date to reclaim your collateral, or extend the term.

3A loan becomes liquidatable if its health ratio drops below 1.10x, or if the due date passes — whichever comes first.

4Earn: stake ETH into the pool (an ERC-4626 vault) to provide the liquidity borrowers draw on. Origination and extension fees accrue to the pool, so your stake grows as loans are taken and repaid — there’s no fixed APR, the yield is the fee flow. Stakers also backstop bad debt if a memecoin collapses below its loan value.

Security

Rook builds on Morpho Blue, immutable lending infrastructure securing billions on-chain. Every contract Rook touches has been independently audited. Liquidation parameters are public, markets are isolated, and all code is open source. There is no admin key that can touch user funds.

FAQ

Do I lose ownership of my tokens when I deposit?−

No. Collateral sits in an isolated Morpho Blue market contract. You keep full price exposure and can withdraw any time your position stays within its loan-to-value limit.

What happens if my collateral price falls?+

Are there fees?+

Can Rook freeze or take my funds?+

Why only USDG as the borrow asset?+