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Borrow Stablecoins Against Your Crypto

Roots is a collateralized borrowing protocol that lets you mint MEAD stablecoins using your crypto assets.
  • Collateral Requirement: See the Parameters Table below for exact MCR per asset.
    • Example: To borrow 100 MEAD, you might deposit 110 worth of approved assets (e.g., USDC.e-HONEY LP at 110% MCR).
  • Borrowing Fee: Variable (~0.5%-5%, one-time, paid in MEAD)
  • Repayment Fee: 0% (Free)
  • Redemption Fee: Variable (~0.5%-5%, paid in MEAD, applies only when redeeming collateral directly)
  • Protocol Fee: 12.5% of earned BGT (deducted automatically)
  • Access liquidity without selling crypto holdings.
  • Maintain exposure to potential price appreciation of collateral.
  • Utilize borrowed MEAD across Berachain’s DeFi applications.

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Parameters Table

Supported Assets & Minimum Collateralization Ratios (MCR):
Supported AssetMinimum Collateral Ratio (MCR)
WBERA - HONEY LP150%
WETH - wBERA LP150%
WBTC - wBERA LP150%
BYUSD - HONEY LP110%
USDC.e - HONEY LP110%

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Reward Streams

BGT (Governance Token)

Earned proportionally to collateral value. Managed automatically by Roots.

Pool Fees (on BEX)

Maintained directly via your LP position on BEX.

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Stability Pool: Earn Liquidated Collateral

Stake MEAD to help secure the protocol and earn rewards from liquidations.

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How It Works

1

Deposit MEAD

Stake your MEAD tokens into the Stability Pool via the Roots interface.
2

Loans Liquidated

When undercollateralized loans are liquidated, the Stability Pool’s MEAD is used algorithmically to repay the debt.
3

Receive Collateral

In return for your MEAD covering the debt, you receive the liquidated collateral at a potential discount.

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Manage Your Positions

Roots provides tools to monitor and optimize your borrowing positions.

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Essential Checks

Always keep your CR above the Minimum Collateral Ratio (MCR) for your specific asset to avoid liquidation. If your CR falls below the MCR, your position is eligible for liquidation by anyone.
Use the dashboard’s alert system or integrate with third-party monitoring tools to stay informed about your position’s health.
View accumulated native BGT rewards in real-time on the Roots dashboard.