Borrowing
Learn how to borrow USDT against your Bitcoin collateral with segregated vaults and transparent liquidation rules.
Overview
Libre allows you to borrow USDT using Bitcoin as collateral without giving up custody of your BTC. Each loan creates a unique vault address where your Bitcoin is held separately from all other borrowers.
How Borrowing Works
Step 1: Choose Your Pool
Select from 6 available lending pools with different terms and rates:
30 Days
3%
$150K
30 Days
9%
$225K
90 Days
11%
$100K
180 Days
13%
$190K
30 Days
15%
$125K
90 Days
20%
$75K
Step 2: Deposit Bitcoin Collateral
Connect your wallet to defi.libre.org/borrow
Your loan gets assigned a unique vault address
Send your Bitcoin collateral to this dedicated address
Your Bitcoin remains in this segregated vault throughout the loan
Step 3: Receive USDT
Choose your loan amount (typically 50% LTV)
Receive USDT directly to your wallet
Start using your borrowed funds immediately
Step 4: Monitor and Repay
Track your LTV ratio in real-time
Add collateral if Bitcoin price drops
Repay anytime to unlock your exact Bitcoin
Liquidation Protection
Libre provides transparent liquidation rules with a 72-hour buffer:
Up to 70%
Safe
Monitor normally
70-80%
Warning
Consider adding collateral
80%+
Liquidation Risk
72 hours to act
After 72h at 80%+
Liquidation
Automatic execution
Key Benefits
Segregated Collateral: Your Bitcoin stays in its own vault address
No Rehypothecation: Your BTC is never lent out or used for other purposes
Transparent Process: All vault addresses are publicly auditable
Fixed Rates: Know exactly what you'll pay upfront
72-Hour Buffer: No surprise liquidations
Example Loan
Scenario: Borrow from the 90-day, 11% APR pool
Collateral: Deposit 0.2 BTC ($20,000 at $100k/BTC)
Loan Amount: Borrow $10,000 USDT (50% LTV)
Interest: Pay 11% APR = $275 total interest over 90 days
Liquidation: Triggered if Bitcoin drops below $62,500 (80% LTV)
Repayment: Pay back $10,275 to unlock your 0.2 BTC
Getting Started
Ready to borrow? Visit defi.libre.org/borrow to:
Connect your wallet
Choose a lending pool
Deposit collateral to your vault
Receive USDT and start using it
FAQ
Q: What happens to my Bitcoin during the loan? A: Your Bitcoin stays in a dedicated vault address that only you can access upon repayment. It's never pooled or used for other purposes.
Q: Can I add more collateral if Bitcoin price drops? A: Yes, you can add more Bitcoin to your vault address anytime to improve your LTV ratio.
Q: What if I want to repay early? A: You can repay your loan anytime. Interest is calculated based on the actual time borrowed.
Q: How do I know my vault address? A: Your unique vault address is provided when you create the loan and is always visible in your dashboard.
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