FAQ

Why borrow USDG against stock instead of just selling?

You keep the upside on your stock, you don't realise capital gains, and you re-open the position whenever you want by repaying. In TradFi this is called securities-based lending and it is a $700B market.

What happens if my stock crashes overnight?

The Helmsman alerts you continuously. If you ignore it and the position passes the liquidation threshold, a keeper repays part of your debt and seizes equivalent collateral plus a small bonus. The bonus is the cost of inaction — healthy positions never pay it.

Do I keep voting / dividend rights?

On testnet the tokens are wrapped representations without those rights. The intent on mainnet is that the CollateralVault forwards dividends and votes to the original depositor unless the position is in liquidation.

How is this different from MakerDAO or Aave?

The shape is similar — collateralised debt — but the collateral class is fundamentally different. Equities have earnings calendars, after-hours moves and option-implied volatility, none of which crypto-collateral protocols model. Vela is built around those signals from day one through the Helmsman.