Frequently asked questions about Stormbit.
What is Stormbit?
Stormbit is a lending protocol on Ethereum that transfers liquidation risk to lenders. Borrowers pay upfront premiums that mathematically price in volatility risk, while lenders earn volatility-compensated returns.
How is Stormbit different from Aave or Compound?
Feature
Traditional (Aave/Compound)
Stormbit
Variable (utilization-based)
What chains does Stormbit support?
Stormbit is deployed on Ethereum mainnet. Additional chains may be supported in the future.
Has Stormbit been audited?
Yes. See Risks & Security for audit details.
Is there a Stormbit token?
No official token has been announced. Anyone claiming otherwise is not affiliated with Stormbit.
Can I really not be liquidated during my loan term?
Correct. Once your loan is funded (status: EXECUTED), your collateral cannot be liquidated until the maturity date — regardless of what happens to collateral prices.
Why are Stormbit rates higher than Aave?
Stormbit rates are higher because lenders take on more risk:
No ability to liquidate early
Rates locked at origination regardless of market conditions
Explicit compensation for volatility risk
The premium is the price of certainty.
What happens if I don't repay at maturity?
Your loan enters a Dutch auction. The auction price starts at 100% of your debt and decreases to 50% over 7 days. A liquidator will buy your collateral at some point in this range.
Can I repay early?
Yes. You can repay any time before maturity. You still pay the full agreed interest.
What collateral types are supported?
ERC20 tokens: ETH, WBTC, stETH, USDC, etc.
NFTs: Via ERC721 module (P2P terms)
Credentials: Via Attestation module (zkTLS proofs)
How is my interest rate determined?
The APR formula considers:
LTV: Higher LTV = higher rate
Duration: Longer term = higher rate
Volatility: More volatile collateral = higher rate
See Risk Pricing for the exact formula.
How do I earn yield on Stormbit?
See How Lending Works for the complete guide.
What if a borrower defaults?
Their collateral is auctioned. You receive the auction proceeds. If the auction price is less than the debt, you take a loss (fees absorb some of the shortfall first).
Can I withdraw my deposit anytime?
You can withdraw any funds not currently allocated to active loans. If all your funds are allocated, you must wait for loans to mature.
What are hooks?
Hooks add custom logic to lending pools. Examples:
P2P Hook: Only you can approve loans
AaveV3 Hook: Idle funds earn Aave yield
Whitelist Hook: Only approved borrowers
What fees do I pay?
8% protocol fee, 1% lender fee, 91% to depositors. No origination fees, no early repayment penalties.
See Fee Structure for details.
What is leverage on Stormbit?
Leverage means using borrowed funds to amplify your exposure to yield-bearing assets. Example: Deposit wstETH → borrow ETH → stake for more wstETH → repeat until target leverage.
Is leverage safe on Stormbit?
For correlated assets (like wstETH/ETH), the main risk is that staking yield drops below your borrow rate. Since risk is transferred to lenders during the term, you're protected from price volatility and temporary depegs.
What leverage multipliers can I achieve?
At 95% LTV: up to 20x leverage At 90% LTV: up to 10x leverage At 85% LTV: up to 6.7x leverage
What's my expected APY from leveraged positions?
Π=yE−rbD Asset yield (staking APY)
Total exposure (leveraged position)
Example at 10x leverage (E = 100 ETH, D = 90 ETH):
Net APY: (3.5% × 100) - (2.2% × 90) = 3.5 - 1.98 = 1.52 ETH/year
ROI: 1.52 / 10 = 15.2% on initial capital
What is a Term?
A Term is a lending pool with specific parameters: asset, fee, and hook. Each term is identified by these parameters plus the lender's address.
What is a Module?
A Module handles collateral for loans. It validates collateral at allocation time and manages custody during the loan.
How does the settlement system work?
When loans repay, interest is recorded in "epochs." Lenders claim their share by calling termSettle(), which distributes interest proportionally based on their balance when the loan was allocated.
What's the difference between EXPIRED and LIQUIDATED?
EXPIRED: Derived status. Loan is past maturity but no one has triggered liquidation yet. Stored state is still EXECUTED.
LIQUIDATED: Actual stored status after a liquidator purchases the collateral via auction.
How do oracles work?
Stormbit uses OracleV1 which aggregates multiple price feeds (Chainlink, Pyth). Prices are validated for staleness before use.
Is the protocol upgradeable?
Yes, via UUPS proxy pattern. Upgrades require:
UPGRADER_ROLE approval (multi-sig)
How does the Lido integration work?
Node operators can leverage their stETH positions:
Deposit stETH as collateral
Borrow ETH at rates locked at origination
Stake borrowed ETH for more stETH
Achieve up to 10x+ leverage on staking yield
Risk transferred to lenders during the term.
What is the Symbiotic integration?
STS (a Symbiotic operator) provides option-based pricing and insurance:
Prices loans using Black-Scholes
Backs insurance with slashable collateral
Covers lender losses if collateral is insufficient
Can I integrate my own protocol?
Yes! Build custom hooks and modules. See:
Troubleshooting
My loan wasn't funded before the deadline
If lenders don't allocate to your loan within the allocation deadline (typically 7 days), the loan expires. You can cancel it to get your collateral back.
I can't withdraw my deposited funds
Your funds may be allocated to active loans. Check your Term's allocation status. You can withdraw once loans mature.
My settlement isn't showing all interest
Interest is distributed lazily. Call termSettle() to claim your share from all pending epochs.
Transaction reverted with "LTV too high"
Your requested loan amount exceeds the maximum LTV for your collateral. Either:
Try a different term with higher LTV limits
Tutorials & Guides
Coming Soon
Video walkthroughs and interactive demos are in development:
How to create your first loan
Setting up a Term as a Lending Manager
Hedging strategies for lenders
Subscribe to our updates for release announcements.
Where can I get help?
Discord: [Join the community]
Documentation: You're here!
How do I report a bug?
For security issues, please email [email protected] (do not post publicly).
For other bugs, open an issue on GitHub with:
Expected vs actual behavior
Transaction hash if applicable
