Questions people actually ask.
What is Sprag, in one sentence?
A loan against collateral you keep, where the borrowed USDG is put to work as liquidity in a Uniswap V3 pool and that pool's trading fees pay the loan down for you.
Who pays my loan off?
The traders in the pool you chose. Every swap pays a fee to the pool's liquidity providers, your position is one of them, and a keeper collects those fees and repays your debt with them. You do nothing. You can also repay from your wallet any time.
What can I use as collateral?
Anything with a Morpho market that holds USDG to lend: USDe, syrupUSDG, mGLO and spUSDG (the deep ones), tokenized stocks such as NVDA, AAPL, GOOGL and SPCX, WETH, and PONS. The Borrow page lists them with what each can lend right now; markets with almost nothing to lend are folded away until a lender fills them. Sprag does not lend - Morpho's lenders do.
Will my collateral be sold?
Never by Sprag. It sits in an isolated Morpho market under an account that belongs to your position alone. The market can liquidate it if its price falls past the liquidation limit - and before that happens, the vault steps in and pays the debt down out of the position's own fees and liquidity. See liquidation protection.
What is "self-repaying leverage"?
Pick the same token as collateral and as the pool: pledge NVDA, borrow USDG, provide it to the NVDA/USDG pool. Half of the deposit becomes NVDA again, so you hold more NVDA than you pledged - typically 1.15× to 1.3× - and instead of paying interest on the extra, the pool's traders pay the loan down. You carry NVDA's price and the pool's impermanent loss; you do not carry an interest bill. The Borrow page has a one-click preset for each stock that qualifies.
I only hold ETH and memecoins. Can I use this?
Yes: pledge ETH (WETH), borrow USDG, and put it into the PONS/USDG pool - the "ETH → PONS" quick start on the Borrow page. Most memecoins themselves cannot be collateral, and tokens launched on pons v2 cannot be pools either, because their Uniswap V4 pools pay liquidity providers nothing.
How much do I need?
The minimum borrow is 25 USDG. Below about 300 USDG the absolute fee income is small - cents a day - and the "clears in N days" figure gets long. The model on the Borrow page shows the exact numbers for your size before you sign anything.
What is impermanent loss, and does it apply here?
Yes. A liquidity position changes composition as price moves: if the token rises, the position gradually holds more USDG and less token; if it falls, the reverse. It can be worth less than simply holding the deposit. The fees are what you are paid for accepting that. The model does not include it; the docs and every position card say so.
What happens if the price leaves my range?
The position stops earning while interest keeps accruing. You can recentre it at once: the liquidity moves to sit right beside the current price, same width, on the side your token can fill, so nothing is swapped and the first move back puts it in range again. After seven days out of range the keeper does it for you unless you opt out. Turn on Turbo and the keeper does it as soon as the price leaves, which suits tight ranges. Each recentre locks in the price move that pushed the position out.
What happens when my loan is paid off?
The liquidity keeps earning, and from then on every harvest pays your wallet instead of the debt (minus the same 5% cut). You can then take your collateral back and leave the liquidity running, borrow again, or close and take everything.
Can I borrow again on the same position?
Yes, up to what has already been repaid: the contract never lets the debt go above what you first borrowed. The USDG goes to your wallet and the same pool pays it off again. The site also stops at 80% of what your collateral supports, so borrowing again cannot put you near liquidation.
What is the rewards pool?
USDG the project puts up to pay down open loans faster, split across every open loan in proportion to its principal, in rounds. Wallets holding at least the stated amount of SPRAG take a weighted share. Every payment is an ordinary repay from the pool's wallet, visible on your statement. It is a bonus, not part of the mechanism, and not a promise of future rounds.
What are points?
Season 0: one point per USDG of principal per day a position stays open, weighted up for SPRAG holders, computed from the vaults' own events. A record of who used Sprag early. What they convert to is announced when the season ends; nothing on the Points page is a promise of a token or a payment.
What does Sprag charge?
5% of harvested fees - income only, never principal or collateral, capped in the contract at 10% - and it goes to the rewards pool that pays borrowers back. Nothing on a plain borrow, nothing on a protection, nothing on Earn.
How do I get out?
Close, any time, from the Portfolio. The liquidity is withdrawn, the remaining debt repaid from it, and your collateral returned with any leftover. Right after opening the position is usually a little short (swap fees in and out), so a small USDG top-up from your wallet is pulled in the same transaction; the card shows the estimate first.
Is it audited?
No. The vault is unaudited, immutable, and capped by a ceiling that cannot be raised. The guardian (a 2-of-3 Safe) can pause new positions and curate the token list; it can never move a position, block a close, or touch your collateral. Read the risk page before opening anything.