Introduction
loom frees the liquidity locked in your stablecoins without giving up their yield. One deposit produces two assets: lUSD you can use immediately, and a withdrawal receipt that redeems your principal plus everything it earned.
The whole protocol in four sentences
You deposit a stablecoin. The protocol routes it into a lending venue (Aave V3 today), where it starts earning immediately. You choose how much liquidity to free — anywhere from 0% to 80% of your deposit — and that amount is minted to you as lUSD. You also receive a receipt NFT: after a two-day unlock, whoever holds it can burn the recorded lUSD debt and withdraw the principal plus accrued yield.
That's the entire machine. There is no oracle, because debt and collateral share the same unit — a dollar-stablecoin deposit backs a dollar-denominated synth. There is no liquidation engine, because a position whose debt is at most 80% of its own collateral, in the same denomination, can never become undercollateralized by price. The largest failure modes in DeFi lending — oracle manipulation, liquidation cascades, MEV liquidations — are absent by construction, not by parameter tuning.
Two assets, two jobs
| Asset | What it is | What it's for |
|---|---|---|
| lUSD | Fungible ERC-20, minted against your deposit | Spend it, trade it, LP it — liquidity now |
| Receipt | Transferable ERC-721 recording principal, debt, and unlock time | The claim on principal + yield — hold it, or sell it |
The split is the point: your money can be in two places at once. The deposit keeps earning in the vault while the freed lUSD works somewhere else. Two assets covers the mechanics.
Exit is a trade, not an unwind
You never have to reverse your position step by step. To exit early, sell the receipt on the receipt market — priced and settled in lUSD, on-chain. To exit at maturity, redeem: return the recorded lUSD, take the principal and yield. Either way, exit is a single transaction against a standing market, not an unwind.
Where to go next
- The loop — how deposits compound up to 5× exposure at zero borrow cost
- lUSD & the peg corridor — what actually holds lUSD near a dollar, and its honest limits
- Risk disclosures — the complete list, before you deposit
- Addresses — verify every contract before you sign anything
loom currently runs on Base Sepolia testnet. Mainnet launch is gated on an independent audit — see Audits.