Use Nami | Borrow | FAQ & Glossary
FAQ and Glossary
FAQ
Does Nami Credit charge interest?
No. Debt does not increase over time through an interest rate.The borrower repays the borrowed principal and the 1% origination fee applied to each borrow.
What can I use as collateral?
NAMI, wveNAMI, and Infinite veNAMI.NAMI is locked as Infinite veNAMI, while wveNAMI is unwrapped before being deposited. The collateral held by Nami Credit is always Infinite veNAMI.
Can I continue voting with my veNAMI while it is in a credit line?
No. Collateral is aggregated into the primary position, which manages voting across all credit lines.
Does my collateral continue to accrue rebase?
Yes. Rebase is attributed to each credit line and increases its Infinite veNAMI collateral, but it is not converted into USDC or used directly to repay debt.
How is the amount I can borrow determined?
Borrowing capacity depends on the amount of Infinite veNAMI attributed to the credit line and a conservative estimate of the voting rewards it is expected to generate.The maximum amount available to borrow represents a variable number of weeks of estimated rewards and is recalculated at each new borrow. If it falls below the existing debt, no immediate repayment is required, but Borrow More remains unavailable until sufficient capacity returns.
Can a change in the price of NAMI liquidate my position?
No. Changes in the price of NAMI do not trigger price-based or permissionless liquidation. Credit capacity is based on expected voting rewards, while any LTV shown in the interface is informational.
Where does the USDC I borrow come from?
From the lending market, funded by lenders who deposit USDC.
How is the debt repaid?
Voting rewards are processed each epoch. A dynamic premium is allocated to the lending market, a protocol allocation is routed to the Recursive Buyback Engine, and the remainder is used to reduce the debt. Debt can also be repaid manually in USDC.
Do I receive voting rewards while I have outstanding debt?
No. Full Repay directs the reward flow available after lender and protocol allocations to the debt.
Can I borrow again after part of my debt has been repaid?
Yes. As debt is repaid capacity becomes available again and can be used through Borrow More, subject to the current maximum and market conditions.
Can I add collateral without immediately borrowing more USDC?
Yes. Collateral can be added without making a new borrow. Borrow More can be executed within the same flow or at a later time.
What happens if I transfer or sell my ncPOS?
Ownership of the entire credit line passes to the new owner, including its collateral and outstanding debt. The ncPOS can also be traded through Nami Marketplace.
When can I close my position?
A credit line can be closed once principal and fees have been repaid and at least 1 epoch has passed. Closing before rebase settlement forfeits the corresponding rebase share for that epoch.
Which chain does Nami Credit operate on?
Nami Credit operates on Base, while Nami's cross-chain infrastructure provides access from other supported chains.
Can I deposit into the lending market from another chain?
Yes. Nami's routing infrastructure handles the swaps and cross-chain operations required to convert the source asset into USDC before it is deposited into the lending market.
Which asset can I receive when withdrawing?
The value redeemed from the lending market is denominated in USDC. It can be received directly as USDC or converted through Nami's routing infrastructure into another supported asset on another supported chain.
Where does lender yield come from?
From a dynamic premium, which is allocated from the voting rewards generated by collateral positions. It can range from 5% to 40% and is recalculated each epoch according to market utilization, and accrues in the value of ncUSDC without a claim required.
Can I always withdraw my entire deposit?
It depends on the USDC currently available in the vault. Withdrawing the full position may require waiting for credit line repayments.
What happens during Recovery Mode?
New borrowing and deposits are suspended, while 100% of voting rewards is directed to debt repayment. As liquidity returns through repayments, withdrawals are processed proportionally based on each lender's share of the vault until Recovery Mode ends.