Networks & Assets
Peridot's primary markets live on the Stellar network. Each market is an independent lending pool with its own interest-rate model and its own collateral factor, the single most important risk parameter for borrowers.
Stellar markets#
| Asset | What it is | Collateral factor | Rate model |
|---|---|---|---|
| XLM | Stellar's native asset, volatile | 70% | Volatile curve (steeper, larger buffer) |
| USDC | Digital US dollar issued by Circle | 90% | Stablecoin curve |
| EURC | Digital euro issued by Circle | 90% | Stablecoin curve |
The gap between 70% and 90% is deliberate: stablecoins barely move against the dollar, so they're safer collateral and support a higher borrowing limit. XLM can swing double-digit percentages in a day, so its factor leaves a wider cushion before liquidation.
Boosted markets
Some Stellar markets offer a boosted variant, where deposits are additionally routed through an auto-compounding vault strategy for extra yield. Boosted markets are marked in the app where available. See APY & rewards.The multi-chain deployment#
Alongside Stellar, Peridot operates an EVM deployment in a hub-and-spoke design: hub chains (led by BSC) host lending pools, while spoke chains (Arbitrum, Base, Ethereum, Polygon, Avalanche) let users supply into the hub without manually bridging: a gasless orchestration layer moves the assets. This surface targets experienced DeFi users and is available on the multi-chain version of the app.
Why Stellar first?#
Three practical reasons: transactions settle in about five seconds, fees are fractions of a cent, and Stellar has first-class support for regulated fiat rails, which is what makes the bank-transfer-to-earning-deposit experience possible without the user ever touching a bridge or a gas token.
Read next#
Borrowing & collateral
How collateral factors translate into your personal borrow limit.
Interest rates
Why the stable and volatile markets use different curves.
Common questions
What is a collateral factor?
The share of a deposit's value that counts toward your borrow limit. A 90% factor on 1,000 USDC adds 900 USD of borrowing power; a 70% factor on 1,000 USD of XLM adds 700.
Why does XLM have a lower collateral factor than USDC?
Because it is volatile. A wider gap between the loan and the collateral value leaves room for the price to fall before the position becomes liquidatable. Stablecoins need less of that cushion.
Why did Peridot build on Stellar first?
Transactions settle in about five seconds, fees are fractions of a cent, and Stellar has first-class support for regulated fiat rails. That combination is what makes a bank transfer land as an earning deposit without the user touching a bridge or a gas token.
What is a boosted market?
A market where deposits are additionally routed through an auto-compounding vault strategy for extra yield. Boosted markets are marked as such in the app, and the extra yield carries the underlying strategy's risk.
Last reviewed on .