> For the complete documentation index, see [llms.txt](https://docs.vaultedge.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vaultedge.fi/the-protocol/general.md). # General ### What is Vaultedge? Vaultedge is a decentralized borrowing protocol that enables users to borrow against a wide variety of assets. Users borrow [USDVE](/the-protocol/usdve.md), a USD-pegged stablecoin, and require a maximum Loan to Value. Which depends on the value of the collateral, for some assets can get as high as 95% LTV. Vaultedge will support borrowing against: * Blue-chip assets (e.g., WETH, WBTC) * Stablecoins (e.g., USDC, USDT) * Staked assets (e.g., wstETH, weETH) * Vault receipt tokens (e.g., Morpho or Aave receipt tokens) * Liquidity Provider (LP) tokens * Real world assets (RWAs) The USDVE stablecoin is decentralized, over-collateralized, and backed by the value of users' collateral positions. The only way to mint USDVE is by depositing collateral into the Vaultedge protocol. **Vaultedge is decentralized and completely non-custodial.** ## How does Vaultedge work? Users deposit whitelisted crypto-assets (e.g., wETH) as collateral into a smart contracts called [Vault](/the-protocol/borrowing/vaults.md), allowing them to mint USDVE. In order to avoid liquidation, vaults must maintain a required Minimum Collateral Ratio (MCR) determined by the Vaultedge data-driven [risk methodology](/the-protocol/borrowing/risk-methodology.md). In addition to the collateral, the loans are secured by the [Stability pool](/the-protocol/borrowing/stability-pool.md), which contains USDVE tokens staked by fellow borrowers who act as guarantors. ### Why should I use Vaultedge? The Vaultedge protocol solves critical problems for users and protocols : * **On-demand, low-cost liquidity** by borrowing against a wide range of tokens at zero interest rate * **Unlock liquidity on your illiquid assets** by borrowing against locked or illiquid tokens * **Deep liquidity on DEXs** without the need to incentivize or pay the other side of the liquidity pools * **Treasuries management** with smart capital allocation * **Earn yield on your USDVE by** depositing in the stability pool and earn a share of the liquidations