We replaced the liquidation price with a date.

Q: What does a loan cost?

One flat fee deducted from the amount you receive: 0.5% for a 7-day term, 2.5% for 30 days, or 2.5% for 90 days at a lower LTV. Repayment is exactly the principal. No accruing interest, no variable rate, no funding payments.

Q: Why would anyone lend into this?

Fees are the premium on a fixed-term put that opened at roughly half the collateral's value, and lenders sit first in the settlement waterfall. 30% of every fee and every default penalty accumulate as a first-loss reserve ahead of lender principal.

Lock FXRP or sFLR, borrow USD₮0, and pick a 7 or 30 day term. Between now and then the price can do whatever it likes. There is no liquidation price, no margin call and no health factor. The only thing that can cost you your collateral is the date you chose yourself.

Open App How it works

AI security review by Pashov Audit Group Built on Flare, priced by the FTSOv2 oracle No token, no emissions, no governance

A 62% drawdown inside a 30-day term. On Lodestar the position is untouched, because there is no line for the price to cross.

Liquidation prices in the protocol

Not a low threshold. There is no threshold. No keeper is watching your position.

0.5% / 2.5%

Paid once, for a 7, 30 or 90 day term

Deducted when the loan opens. Not interest. Nothing accrues, nothing compounds.

50% / 45%

Maximum LTV on FXRP and sFLR

Sized against each asset's own multi-year drawdown history, not against a round number.

Findings, published in full

5 Medium, 2 Low from Pashov Audit Group. Six fixed, one acknowledged. Read the report ↗

Four steps, and then nothing to watch.

A Lodestar loan has two moving parts: what you locked, and when you said you would be back. There is no third one.

Lock your collateral

Deposit FXRP or sFLR. Staked collateral keeps earning its staking yield for the whole term, and that appreciation comes back to you on repay.

Borrow USD₮0

Up to 50% of the value you locked on FXRP, 45% on sFLR. The fee is netted out of what you receive, so you know the whole cost before you sign.

Pick your date

7 days at 0.5%, 30 days at 2.5%, or 90 days at 2.5% with a lower LTV. You can extend before the date arrives, or pay part of it down early and unlock a matching share of your collateral.

Repay by then

You repay exactly the principal, never a cent more. Your collateral comes back in full. There is no accrued interest to true up.

What can actually happen to your position.

The complete list. If a scenario is not on it, it is because it cannot occur.

XRP falls 30% overnight

Nothing. No margin call, no notification, no keeper. Your loan is exactly as it was when you opened it.

XRP falls 60%, then recovers before your date

Nothing. The path between opening and your date is not an input to anything. Only the price at the end can matter, and only if you walk away.

You repay before your date

Collateral back in full, plus whatever staking yield it earned while it was locked. You repay the principal and nothing else.

You need longer, or want out early

Extend for another term's fee, or pay part of it down and unlock a matching share of the collateral. Total loan life is capped at 90 days from open.

You miss your date

You get 48 hours of grace. After that anyone can settle the loan at a protected floor price. Lenders are repaid first, a 5% penalty goes to the reserve, and everything left over comes back to you.

Some readers assume that no liquidation price means there is no way to lose collateral. That is not the case. Missing your date can, and it is the only thing that can. That last row is the entire risk of borrowing here, which is why we put it on the front page instead of in a footnote.

So what happens if you miss it?

Not a liquidation cascade, and not a fire sale into whatever DEX liquidity happens to be there that minute. Settlement runs against a price floor written into the contract.

The floor opens at 100% of the oracle price and eases to 85% over 24 hours, so a settler has to pay a fair price and nobody can dump your collateral cheap. You can settle it yourself at that same price and take the collateral straight back.

The waterfall is fixed and public: lenders first, then the penalty, then you. On every other lending protocol a default means the penalty eats the difference. Here the difference is yours, and the contract sends it back.

A settler has to beat this line to take the collateral, so there is no price at which your position can be dumped cheap.

Grace period

48 hours after your date before anyone can touch the loan at all.

Settlement floor

Starts at 100% of the FTSOv2 oracle price, decays to 85% over 24 hours. It never goes lower.

Paid first

Lender principal. Always, before anything else is paid to anyone.

Then

A 5% penalty to the first-loss reserve.

Then

The surplus, back to you. You keep the borrowed USD₮0 either way.

No DEX required

A settler can pay stablecoin and take the collateral in kind, so settlement cannot stall on thin liquidity.

For XRP holders

No EVM wallet. No gas token. No bridge.

Most XRP has never touched an EVM chain, and asking someone to install a new wallet, buy a gas token and learn a bridge is three reasons to close the tab.

Lodestar can be driven from the XRPL wallet you already have. A signed instruction from your XRPL account opens the loan on Flare, using Flare Smart Accounts. You never hold FLR, you never install anything, and the loan is yours on chain like any other.

Borrow from XRPL →

You need

An XRPL wallet holding XRP. That is the entire list.

You do not need

MetaMask, FLR for gas, or any bridging experience.

How

Your XRPL signature authorizes the call on Flare. The account is derived from your XRPL key, so only you control it.

What you get

USD₮0 against your XRP, on the same terms as anyone borrowing from an EVM wallet.

New: Loop

Leverage with a date instead of a liquidation price.

Lock, borrow, buy more of the same collateral with the loan, lock that too. Up to four legs, opened in one transaction. Every leg is an ordinary Lodestar loan, so the position has no liquidation price. A lending-pool loop dies on a price. A Lodestar loop only ends on a missed deadline.

1,000 FXRP on the 7-day term becomes about 1,868 FXRP locked after four legs at the oracle price. You set a price tolerance on the buys; fill worse than that and the whole thing is refused on chain and nothing changes hands.

Loop it →

Legs

2, 3 or 4. Each leg pays its term fee once, up front, and all legs share one deadline.

What closes it

Only the deadline. No health factor, no keeper reading your position against a price.

Unwinding

One click, last leg first. You bring the innermost leg’s cash; the rest pays itself as each leg’s collateral is sold to repay the next.

The contract

No owner, no admin, no upgrade path, one swap venue fixed at deployment, sources verified on the Flare explorer.

The other side of it.

Supply USD₮0 to the lender pool and receive lodUSD₮0, a standard ERC-4626 share that appreciates as fees land. There is no lockup and no notice period, though redemptions are paid from the pool’s idle balance, so at high utilization you may need to wait for loans to mature.

Where the yield comes from

Origination fees paid in USD₮0 by real borrowers, and nothing else. There is no token emission propping up the number, so there is no schedule on which it quietly disappears. 70% of every fee goes to lenders; the remaining 30% builds the first-loss reserve.

What you are actually taking on

Worth saying plainly, because it is the part that decides whether you should be here. When you lend, you are writing a fixed-term put. If a borrower walks away, the pool ends up holding their collateral at the strike, and your return in that instance is the fee rather than the fee plus a clean exit. Fees are set well above what the rare walk-away costs — deliberately so, while there is no live loss history to price against. That margin is what fills the first-loss reserve and pays you. That is the trade. If it sounds like a trade you would not take, do not take it.

Where a settlement's proceeds go, in order

You are ahead of the protocol's own reserve and ahead of the borrower. Nothing is paid below you until you are whole.

What eight years of XRP say

Every live tier was run through the walk-away model on daily XRP prices from May 2018 to September 2026, settling exactly the way the contract does: 48 hours of grace, then a floor that eases from 100% to 85% over a day. The lender share of the fee is compared with the loss that history would have produced.

Tier	Walk-aways in 8 years	Lender fee covers the average loss	Covers the worst-case bound
7 days, 50% LTV, 0.5%	3 of 3,034 start dates	28×	2.1×
30 days, 45% LTV, 2.5%	12 of 3,011	33×	1.8×
30 days, 25% LTV, 0.5%	none	never lost	3.1×
90 days, 35% LTV, 2.5%	1 of 2,951	663×	1.8×

The worst single loan in the sample would have cost 19% of its principal, on the 30-day tier, in the 2021 crash. That is what the first-loss reserve is for, and why it is funded by the 30% of every fee that does not go to lenders. Eight years is four tail events, not four hundred; the bound column is the honest one.

Open the lender pool →

First claim

Lender principal is paid before the penalty, the reserve or the borrower's surplus.

Overcollateralized

Every loan opens at roughly 2× collateral to debt. This is the real protection; the reserve is not.

First-loss reserve

30% of every fee plus all default penalties, accumulating on chain, ahead of you in the queue.

Honest accounting

A default is marked into the share price the moment it happens, so nobody can exit ahead of bad news.

Concentration limits

Each collateral asset carries its own exposure cap. Utilization is capped at 80%.

Redemption

Any time, subject to idle liquidity in the pool. No lockup and no notice period.

Against the two things you would otherwise do.

You want dollars and you do not want to stop being long. There are three ways to get there.

	Lodestar	Variable-rate money market	Sell, then buy back
Liquidation risk	None. There is no price that closes you.	A wick below your health factor closes you, at 3am, at whatever the oracle prints that block.	None, you already sold.
Cost	0.5% for 7 days, 2.5% for 30 or 90. Paid once, known before you sign.	A variable rate that can move while you sleep, plus the liquidation penalty when it happens.	Spread, slippage, and a taxable disposal in most places.
Capital you must leave idle	None. Borrow to your LTV and walk away.	A buffer above your liquidation price, permanently unproductive, or you get closed.	Not applicable.
What you do in a crash	Nothing.	Top up collateral fast, or lose the position and the penalty.	Watch, having already sold the bottom or the top.
Your exposure	Fully intact for the whole term. Staked collateral keeps earning.	Intact until it is not.	Gone.
At the end	Repay the principal, take the collateral back.	Repay principal plus accrued interest, whatever it grew to.	Buy back at a price you do not control.

Scroll the table sideways to see all three.

Audited before launch, and we published everything they found.

Including the finding we chose not to fix, and why. A report you cannot read is not a trust signal.

Reviewed by

A full review of the loan book, the lender pool, the oracle adapter and the settlement path. Seven findings, no Criticals and no Highs. Six were fixed and the fixes re-reviewed. The seventh, M-03, was acknowledged rather than patched: opening a loan checks the utilization ceiling against assets that have not yet had a pending impairment marked into them, so between a price fall and the next synchronization the pool could sit slightly past its configured utilization. It is unreachable at the launch caps, because the pool holds more than every exposure cap combined can borrow, and that bound is pinned by a test so it cannot reopen quietly as the caps are raised. The full reasoning is in the report, and the report is on this site, unedited.

Critical

High

Medium

Low

Fixed

Acknowledged

Read the audit report Source on GitHub

Contracts · Flare

LoanBook0x9b47…5ed8

LenderPool0x87b0…780E

Oracle0x97Dc…fEc9

Beyond the audit

Oracle

Flare's enshrined FTSOv2, the same feed that secures the chain. Not a DEX spot price a flash loan can bend for one block.

Oracle outage

Settlement waits 7 days and then falls back to the last recorded price, so downtime can never be used to underprice a sale.

Test coverage

Unit, adversarial, fuzz-invariant and live Flare fork tests. Every finding from every review carries a regression test.

Admin powers

Risk parameters and exposure caps sit behind a 3-of-5 multisig. Admin cannot take collateral, cannot move lender funds, and cannot change the terms of a loan that is already open.

No token

No governance token means no governance attack and no emissions to unwind.

Questions worth asking.

Starting with the ones a skeptic asks first.

The claim

Is there really no liquidation price?

Yes, and it is a structural consequence rather than a promise. Nowhere in the contract is there a health factor, a threshold or a keeper that reads your position against a price. A loan has a borrower, a collateral amount, a principal and a due date, and only the due date is checkable before that date arrives. The price risk did not disappear; it was bounded by duration instead. Lenders are willing to ignore the price path precisely because the exposure ends on a known day, and because the loan opened at roughly half the collateral's value.

Then where did the risk go?

Onto the lenders, who are paid for it, and onto the calendar. A conventional money market manages price risk continuously, which is why it has to be able to close you at any moment. Lodestar manages it two ways instead: a conservative LTV at open, sized against each asset's own multi-year drawdown history, and a term short enough that the asset would have to fall past that buffer and stay there. If both happen and the borrower then walks away, the pool holds the collateral and the pooled fees absorb the difference. That is the whole model.

Can I lever up without a liquidation price?

Yes, that is what Loop is. Lock collateral, borrow, buy more of the same collateral with the loan, lock that too, up to four legs in one transaction. Each leg is a plain fixed-term loan with its own fee paid once and the same deadline, so the multiplied position still has no price that closes it. What it does multiply is the fee and the deadline discipline: every leg can be walked away from separately, and unwinding needs the innermost leg’s cash in your wallet. The dapp states all of this under the button before you sign.

Annualize 0.5% for 7 days and you get a scary number.

You get about 26%, and that number assumes you borrow 52 times a year. If you plan to, this is the wrong product and a variable-rate pool is cheaper. What the fee buys is collateral you do not have to leave idle: on a market that can liquidate you, prudence means borrowing well under the LTV on offer, and that unused buffer is a real cost nobody puts in the APR. Here there is no wick to survive, so you can use the full LTV, and the collateral keeps earning while it is locked. The rest is the ordinary price of borrowed money plus the liquidation penalty you are no longer exposed to. Nothing accrues and nothing compounds. Borrow $10,000 for 30 days and you receive $9,750 and repay $10,000. Per day the 90-day term is the cheapest at roughly 0.028%, against 0.071% on the 7-day and 0.083% on the 30-day; the 30-day buys the higher LTV. The honest comparison against a variable-rate loan is interest plus the liquidation penalty you might eat plus the buffer capital you must leave idle to avoid it.

The risk

What happens if I miss my deadline?

You get 48 hours of grace first. After that, anyone can settle the loan by paying its floor price, which starts at 100% of the FTSOv2 oracle value and eases to 85% over 24 hours, so nobody can dump your collateral cheap. Lenders are repaid first, a 5% penalty goes to the reserve, and everything left over comes back to you. You can settle it yourself at that same price and take the collateral back. Defaulting costs you the penalty, not the whole position.

Why would anyone lend into this?

Because the fees are the premium on a fixed-term put that opened at roughly half the collateral's value, and because lenders sit first in the settlement waterfall. The risk is real and bounded: a lender only takes a loss if the collateral falls through the break-even within a single term and the borrower then abandons a position still worth more than the debt would suggest. 30% of every fee and every default penalty accumulate as a first-loss reserve ahead of lender principal. See the lender section for the trade stated plainly.

What if the oracle is wrong?

Prices come from Flare's enshrined FTSOv2 feed, the same decentralized oracle the network itself stands behind, not from a DEX spot price a flash loan can bend for one block. It prices collateral when the loan opens and anchors the settlement floor on default, and nothing in between. If the oracle goes down, settlement waits 7 days and then falls back to the last recorded price, so an outage cannot be used to underprice a sale. For staked collateral the exchange rate is additionally clamped, so a compromised rate provider cannot inflate what your collateral appears to be worth.

Can the team take my collateral?

No. Admin can pause new borrowing, adjust risk parameters for future loans and set exposure caps, all from behind a 3-of-5 multisig. There is no function that moves a borrower's collateral or a lender's deposit to an address the admin chooses, and none that changes the terms of a loan already open. That is the specific thing the audit was pointed at, and it is worth verifying yourself against the source rather than taking our word for it.

What are the risks, stated plainly?

Smart contract risk: an AI security review by Pashov Audit Group, with the report published here in full, but no review makes code risk zero. Oracle risk: FTSOv2 is decentralized and enshrined, and it is still an external dependency. Deadline risk, for borrowers: the date is the one thing that can cost you, and it is on you to be back before it. Collateral risk, for lenders: a severe drawdown inside a single term plus a borrower who walks away is the loss scenario, bounded by the LTV and the reserve but not eliminated. Handle accordingly, and only with capital you can afford to have at risk.

The practical bits

What does a loan cost, exactly?

One flat fee, deducted from the amount you receive: 0.5% for a 7-day term, 2.5% for 30 days, or 2.5% for 90 days at a lower LTV. Repayment is exactly the principal, nothing more. No accruing interest, no variable rate, no funding payments. You know the full cost before you open it.

Can I extend, or pay it down early?

Both. Extend any time before your date and the deadline pushes out by that term's duration for another term's fee, while the borrowed USD₮0 stays in your wallet. The position has to still meet its LTV at current prices to extend, and total loan life is capped at 90 days from open. You can also repay part of it whenever you like and a matching share of your collateral unlocks with it, leaving the deadline where it is.

Is there a protocol token?

No, and there never will be. Lodestar is fee-only: lenders earn real fees paid by real borrowers in USD₮0. Nothing to farm, nothing to dump, and no emissions schedule subsidizing an APY that disappears the moment they end.

What can I use as collateral?

FXRP at launch, at 50% LTV on the 7-day term and 45% on the 30-day, alongside sFLR at 45% and 40%. Staked collateral like sFLR keeps earning its staking yield for the whole term and that appreciation returns to you on repay. Further assets are added only with their own exposure cap and their own LTV, sized against that asset's own history.

A price crash can never liquidate you. Only the calendar can.

Fixed-term lending on Flare. No token, no emissions, and nothing to watch between now and your date.

Open App