Loan Protocol is a non-custodial decentralized lending protocol consisting of two parties:

• Depositors who lend tokens to a market
• Borrowers who borrow the lent tokens from a market and pay interest to the depositors in return.

Each borrowing market has a Collateral Factor, a percentage value determining the max a user can borrow versus their deposited value (common values are ~70%). Thus, to borrow $B, a borrower has to put up $C as collateral.

When you stake your LOAN on ProtonLoan.com, it is automatically wrapped into Staked-LOAN, or sLOAN. While staked, it will accrue interest, allowing you to vote on governance decisions for the Proton Loan ecosystem like what coins to add next. When you’re ready to unstake your crypto, the sLOAN will automatically be unwrapped and deposited back into your wallet as LOAN.

Governance decisions will include: 

• Which tokens can be collateralized on the protocol to be borrowed or lent
• What the interest rate curves will be for borrowing tokens 
• Other similar governance decisions as needed.