Borrowing solUSD

Borrowing on Manna works by opening a Trove — your individual collateralized debt position.

Opening a Trove

1. Deposit SOL into your Trove
2. Mint solUSD up to the maximum allowed by your collateral ratio

Borrowing Fee

Manna charges a one-time minting fee on the amount of solUSD borrowed:

• Base rate: 0.5%
• Dynamic adjustment: The fee increases when redemption volume is high (to deter arbitrage loops) and decays back to 0.5% over time
• No ongoing interest — your debt never grows

Example: Borrowing 10,000 solUSD at the base rate costs a one-time fee of 50 solUSD.

Maximum Borrowing

The 125% minimum collateral ratio determines how much you can borrow:

Max solUSD = Collateral Value / 1.25

This means you can borrow up to 80% of your collateral's dollar value.

SOL Collateral Value	Max solUSD (at 125% CR)	Recommended solUSD (at 150% CR)
$1,000	~800	~666
$5,000	~4,000	~3,333
$10,000	~8,000	~6,666

Repaying Debt

• Repay any amount of your solUSD debt at any time
• No maturity date, no repayment schedule
• Once fully repaid, withdraw your SOL
• Partial repayments increase your collateral ratio

Tips

• Don't max out your borrow. A 125% CR leaves zero margin for SOL price drops. Aim for 150%+ to stay safe.
• Monitor your position. If SOL price drops, your CR drops. Top up collateral or repay debt to avoid liquidation.
• Keep solUSD on hand. If you need to close your Trove quickly, you'll need to have solUSD available to repay.