A credit line can be opened using NAMI, wveNAMI, or Infinite veNAMI as collateral.

The process is handled automatically based on the asset used:

• NAMI is locked as Infinite veNAMI.
• wveNAMI is unwrapped into Infinite veNAMI.
• Infinite veNAMI is deposited directly.

Once the collateral is selected, Nami Credit calculates the available borrowing capacity and allows the user to choose how much USDC to borrow.

The process creates a Nami Credit Position, represented by an ncPOS NFT, and the borrowed USDC is sent to the user's wallet or specified address.

How Collateral Is Held

All collateral deposited into Nami Credit is aggregated into a single Infinite veNAMI position managed by the protocol.

Each credit line maintains a share of this shared position, which determines the collateral and rewards attributed to it. When the credit line is closed, the corresponding share is separated and returned to the user as Infinite veNAMI.

While the collateral remains in the credit line, voting is handled automatically through the shared position according to allocations defined by the protocol, with no action required from the user.

The collateral continues to accrue rebase, which is attributed to the corresponding credit line along with the other rewards generated by the positions.

Epoch Transition Window

After each epoch transition, opening new credit lines and adding collateral are temporarily disabled for a short period while the rebase is distributed and reflected in position accounting.

Closing remains available during this window, but any pending rebase for the current epoch is forfeited if the position is closed before settlement.

Borrowing capacity is determined by the amount of Infinite veNAMI used as collateral and the voting rewards it is expected to generate.

It is variable and does not depend on the market price of the underlying NAMI or a price-oracle-based LTV.

It is calculated using the lower value between the voting rewards generated in the most recent epoch and their average over recent epochs, with an additional safety adjustment.

Sufficient historical data is required before Nami Credit becomes available.

The amount that can actually be borrowed is further limited by the available liquidity in the lending vault and the maximum permitted market utilization.

Borrowing capacity may change as collateral, estimated rewards, or vault conditions change.

As debt is repaid, the corresponding borrowing capacity becomes available again and can be used for additional borrowing.

Rewards generated by the collateral, including voting rewards and rebase, are automatically collected and processed during each epoch.

Full Repay

This mode is designed to repay the credit line as quickly as possible using the rewards generated by the collateral, split between the lending market, the protocol, and debt repayment.

The borrower does not receive any reward distribution while the credit line has outstanding debt.

If the rewards generated by the collateral decrease, repayment takes longer.

Manual Repay

Debt can be repaid manually at any time using USDC. Users can make a partial repayment or repay the amount owed in full.

Each repayment reduces the credit line's debt and frees up additional borrowing capacity.

A credit line can be modified throughout its lifetime through several management actions.

Add Collateral

Additional NAMI, wveNAMI, or Infinite veNAMI can be added to an existing credit line.

NAMI is locked and wveNAMI is automatically unwrapped before being added to the position's collateral.

Increasing the collateral increases the available borrowing capacity.

Within the same flow, the user can choose to use the additional capacity through Borrow More or simply complete the collateral deposit.

Borrow More

As long as borrowing capacity is available, a credit line can borrow additional USDC without opening a new position.

The new amount is added to the existing debt and is subject to the applicable issuance fee.

Merge

Two credit lines can be merged into a single ncPOS.

The collateral, debt, fees, and settings of the source position are incorporated into the destination position, and the source ncPOS is closed.

The source position must have completed at least one epoch before it can be merged.

Close

A credit line can be closed once principal and fees have been repaid in full and the position has completed at least one epoch.

When closed, the collateral associated with the position is separated from the shared position, returned to the user as Infinite veNAMI, and the corresponding ncPOS is closed.

Each credit line is represented by a Nami Credit Position NFT, or ncPOS, which includes its collateral, debt, fees, and settings.

Ownership of the credit line follows ownership of the ncPOS. Transferring the NFT transfers the entire position to the new owner, including its collateral and outstanding debt.

ncPOS positions can be transferred freely or bought and sold through Nami Marketplace.

Each new borrow is subject to a 1% issuance fee, added to the credit line debt and routed to the Recursive Buyback Engine, without reducing the USDC received by the borrower.

Voting rewards collected by the position are allocated according to the following structure:

The share of voting rewards allocated to the lending market is not a fixed percentage: it is recalculated once per epoch, within the 5% to 40% band.

The fees directed to the lending market provides the source of yield for lenders.

The 5% Protocol Fee and issuance fees are routed to the Recursive Buyback Engine.

The remaining is allocated to the credit line.

A credit line is not liquidated based on the price of collateral.

There is no collateralization threshold that can be breached by a market movement in NAMI.

Debt is serviced over time through the rewards generated by the position.

If this reward flow decreases, repayment slows down and the collateral remains committed until the credit line is fully repaid.

A reduction in the current maximum can prevent Borrow More but does not create a forced repayment.