Borrow RLUSD
Documentation

How Straid works

A short, honest description of one product: a fixed term RLUSD loan against XRP held in an escrow on the XRP Ledger.

The loan

You lock XRP in a conditional escrow that your own wallet creates. Straid pays RLUSD to the same wallet, minus a one off origination fee. You repay principal plus interest before the deadline and Straid finishes the escrow, which returns the XRP to your address.

Interest is fixed when the loan opens and owed in full even if you repay on the first day. The term is short on purpose: 7 days, with repayment due 48 hours before the term ends, so there is time to act if you do not pay.

Where your XRP is

In an escrow object on the ledger, created by your transaction. Straid never holds your keys, and for the life of the loan the collateral is held by the ledger rather than by us. The escrow has a condition and a cancel time, which is the whole security model:

  • The condition. Only someone holding the matching secret can finish the escrow early. Straid derives that secret for your loan alone, inside a key service, and commits to it in the escrow you sign. Finishing it sends the XRP to Straid's collateral account, which on repayment pays it straight back to you.
  • The cancel time. It sits at the end of the term. After it, anyone can cancel the escrow, which returns the XRP to you. That is your backstop if Straid disappears entirely.

Straid checks the escrow your wallet created, field by field, against the one it prepared. If a single value differs, nothing is paid out and your XRP comes back at the cancel time.

Repaying

One RLUSD payment from the wallet that borrowed, carrying the destination tag shown on your loan. The tag is how the engine knows which loan the money belongs to. A payment without it, or from another wallet, is parked and returned rather than credited.

Straid credits what the ledger says was delivered, not what the payment claims. Part payments are credited and lower both what is left and the price at which the loan could be called.

Prices, and when a loan is called

The XRP price is a median of several exchange feeds, refreshed continuously. Its age is published with it, and loans are refused when the feed is stale rather than priced on an old number.

If the debt reaches 55% of what the collateral is worth, Straid may close the loan early using the collateral. Your loan page shows the exact XRP price at which that becomes possible. There is no automated sale engine: an operator decides and acts, and anything left after the debt and costs is returned to you.

Today's terms

  • Interest: 7.5% a year, fixed for the term.
  • Origination fee: 0.5%, taken from the amount paid to you.
  • Term: 7 days, repayment due 48 hours before the end.
  • Maximum loan: 40% of the collateral's value at origination.
  • Called at: 55% loan to value.
  • Late: 15% a year, charged on the principal for each started day past the repayment deadline.
  • Smallest loan: 5 RLUSD.
  • These are Straid's terms on XRPL mainnet, against RLUSD issued by rMxCKbEDwqr76QuheSUMdEGf4B9xJ8m5De. This page always shows them, so the number you read here is the number a real loan is written at. The borrowing app can be pointed at the test network instead, where the same flow runs with worthless tokens and nothing is a real loan.

Who can borrow, and what the beta limits are

Anyone with an XRPL wallet. There is no list of approved addresses, no application and no invitation: if the ledger will let you sign the escrow, Straid will lend against it, subject to the same published parameters as everyone else.

  • Xaman is the wallet supported today.
  • Five open loans per wallet, and a cap on the size of the whole book.
  • Addresses are screened against sanctions and internal lists, and some countries are not served.
  • Operations are manual: people watch the book and act on it.

For developers

The website uses the same public API a partner would. Quotes and parameters need no authentication; anything about a specific loan needs a session, which is a signature from the borrowing wallet. There is no embedded widget and there will not be one.

GET /v1/limitsCurrent parameters and accounts
GET /v1/oracle/statusThe price, its source and its age
POST /v1/quotesSize a loan without opening it
POST /v1/auth/siwxExchange a signed message for a session
POST /v1/loan-intentsOpen a loan, get the escrow to sign
GET /v1/loansYour loans
GET /v1/loans/{id}One loan, with what is owed now

Write to [email protected] if you want to integrate.

The risks, plainly

  • XRP can fall far enough that your collateral is taken to cover the debt.
  • If you miss the deadline, the penalty rate runs and the collateral can be taken.
  • Straid is young software run by a small team. It has not been audited by a third party.
  • RLUSD is issued by Ripple, not by Straid, and depends on that issuer.
  • Borrowing against an asset you expect to rise is still a bet. Size it accordingly.

Terms and privacy carry the full wording.