> For the complete documentation index, see [llms.txt](https://docs.hoard.world/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hoard.world/the-world/the-bank.md).
# The Bank
The Teller
Access USDG without selling HOARD. The Teller runs the borrowing side.
## Two tiers
```
No whole Hoardling bound to the loan: maximum debt = pledged HOARD value × 45%
A nested Hoardling bound to the loan: maximum debt = pledged HOARD value × 65%
```
* Any amount of HOARD, including Scales, can be pledged. A 2% deposit fee on pledged HOARD goes to the lender pool as HOARD.
* Binding a nested Hoardling is fee-free, and the Hoardling keeps earning SPY while bound. Its whole unit counts as collateral exactly once.
* The bound Hoardling can be released once debt is at or below the ordinary 45% limit: back to the Nest, or kept as pledged HOARD.
* Borrowed USDG is yours to use, including to buy more HOARD.
## Example
At a HOARD price of $100:
* 0.6 HOARD is worth $60 and unlocks up to $27 at 45%.
* 1.6 HOARD with a Hoardling bound is worth $160 and unlocks up to $104 at 65%.
* To release that Hoardling, debt must first come down to $72, the 45% limit.
## Interest
The rate follows pool utilization on a two-slope curve: **40% APR** when the pool is idle, **70%** at the 80% utilization kink, **120%** when fully lent out. Interest accrues through a global borrow index, and only interest actually paid is routed: 40% to lenders, 40% to the Stock Vault, 20% to the wall.
## The price the Bank uses
Borrowing power comes from the pool's own price, guarded against a single-block move:
* **Borrow price** = the lowest of spot, the 5-minute TWAP and the 30-minute TWAP. A falling price cuts borrowing power in the same block; a pump has to hold for the full window before it lends.
* **Liquidation price** = the lower of the two TWAPs, never spot, so a same-block crash cannot seize a position.
* If the pool has not traded for a day, new borrowing pauses until it does. Repayments and withdrawals never wait.
## Liquidation
| Tier | Origination limit | Liquidation threshold | Price drop from the limit to liquidation |
| --------------- | ----------------- | --------------------- | ---------------------------------------- |
| Ordinary | 45% | 77% | 41.6% |
| Bound Hoardling | 65% | 91.5% | 29.0% |
Liquidation is permissionless and immediate once a position crosses its threshold. The LiquidationRouter seizes collateral, sells it through the canonical pool without the 3% fee, pays the caller a 2.6% incentive, repays the lender pool, and returns any surplus to the borrower.
Liquidations are sized by the breach. While a position is at most 5 points past its threshold, one call may close at most 50% of the debt and seizes only from the loose pledge. A deeper breach, a debt of 100 USDG or less, or a position with no loose pledge left closes whole, bound Hoardling included. A partial never takes part of a Hoardling. The router refuses to sell seized collateral below 75% of the oracle value, so a manipulated pool cannot execute a seizure at a crashed price.
The app shows the current LTV, the liquidation price, the rate and the daily interest before every action.
---
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