Core Concepts
Supercollateral

Supercollateral

The Superseed governance token has a special role in the CDP protocol: it acts as supercollateral. This allows borrowers who maintain certain safety requirements (e.g., a c-ratio of 500%) to borrow against it without having to pay interest on their loans.

Additionally, the fees generated across the Superseed ecosystem get channeled into repaying the loans of supercollateral users.

There are a number of sources of fees that will be used for automatic loan repayment:

  1. L2 sequencer net profits
  2. Interest generated from loans backed by non-supercollateral assets (e.g., ETH, wBTC) within our CDP protocol
  3. Revenue from Proof of Repayment
  4. Revenue from native yield staking bridge — users have the choice between yield-generating and traditional bridge options