How Turret P2P loans work

Turret P2P connects people who want to borrow USDG against their tokens with people willing to fund those loans. A lender chooses the amount, collateral, interest and duration. A borrower reviews the offer and accepts its terms. The contract holds the collateral and enforces the agreed repayment and default rules.

This gives holders of supported Robinhood stock and ETF tokens, along with Turret's other eligible assets, another way to borrow without selling their tokens at the outset. It also gives lenders a specific decision: how much USDG would you lend against this collateral, for how long, and at what price?

P2P sits alongside Turret's pooled Borrow and Earn products. Both appear in Portfolio, but their funding and settlement rules are separate.

An offer comes with money behind it

Any wallet can create a lending offer using its own USDG. The lender chooses the collateral token and exact quantity, the USDG principal, a fixed interest amount, the loan duration and when the unused offer expires.

Publishing an offer deposits the full principal into the contract. An open offer therefore has funding reserved for it. The same USDG cannot back several open Turret P2P offers at once.

Public offers are available for other eligible wallets to accept. A lender can also restrict acceptance to one borrower address. That restriction does not make the terms confidential: they remain visible on the blockchain.

Borrowers can browse, filter and sort public offers before connecting a wallet. Each offer is taken in full, once. Opening its review page does not reserve it; the first successful acceptance receives the loan.

Until acceptance, the lender can cancel the offer. Cancellation or expiry settlement releases the reserved principal into a withdrawal balance. An unused offer earns no interest.

What happens when a borrower accepts

Consider this illustrative offer. It is not a live quote or a recommendation about collateral value.

Loan term	Agreed amount
Borrower receives	1,000 USDG
Collateral locked	20 NVDA tokens
Interest for the entire loan	20 USDG
Total repayment	1,020 USDG
Duration	30 days from acceptance
Repayment grace period	24 hours after the due date

The borrower approves the required collateral and accepts the offer. Acceptance locks the collateral and transfers the funded USDG to the borrower in one transaction. If acceptance fails, that transaction does not create a loan or complete those transfers. A token approval confirmed earlier may still remain.

The duration starts when the loan is accepted. The offer's expiry only controls how long an unused offer can be taken; it does not shorten an accepted loan.

The fixed interest amount is the cost for the whole loan. Any annualized equivalent displayed for comparison is not an additional charge or a promise of compounded yield. Network transaction fees are separate.

Repayment and default have different outcomes

Repaying the example loan requires the full 1,020 USDG, including if the borrower repays early. The current version does not support partial repayment or automatic refinancing.

Repayment is allowed through the final deadline, including the 24-hour grace period. Successful repayment credits the lender with principal and interest and credits the borrower with the collateral. Each recipient then withdraws their assets to a wallet in a separate transaction.

After the final deadline, an unpaid loan can be settled as a default. All of its collateral becomes withdrawable by the lender, and the loan's USDG debt closes. The lender does not receive both full repayment and the collateral.

There is no automatic collateral sale or surplus refund. A borrower who misses the deadline can lose tokens worth more than the debt. A lender can receive tokens worth less than the money lent.

Why a price fall does not trigger a P2P liquidation

Turret P2P does not use a price feed to decide when to liquidate a loan. Its terms specify a token quantity and a repayment deadline. A market price change does not alter those terms or trigger an early collateral sale.

That matters for assets with thin trading liquidity. A pooled lending market needs a credible way to recover value when collateral becomes insufficient. A direct lender can instead agree to receive the collateral after default, without requiring an immediate sale into USDG.

The economic risk remains. If the tokens fall sharply, the borrower may choose to default and the lender may lose principal. Receiving collateral does not mean it will be easy to sell. Lenders need to assess both what the asset may be worth and whether they are willing to own it.

Token issuer restrictions also still apply. An issuer freeze or transfer restriction can affect collateral even when Turret's loan contract is functioning.

More funded offers mean more borrowing capacity

P2P capacity grows when lenders commit more USDG to offers that borrowers can use. If lenders publish ten open offers of 1,000 USDG each, those offers reserve 10,000 USDG in total. Borrowers still need the required collateral and must accept each offer's full terms.

Adding another supported collateral asset creates a place for offers. It does not put money there. Better terms and reliable funding are what make a marketplace useful.

Pooled Earn deposits fund their respective pools. They do not automatically enter P2P, and P2P funds do not backstop the pools. Portfolio brings both products into one view without combining their balances or risks.

How this compares with other lending protocols

PWN is the closest comparison. It already supports lender-selected terms and loans that default based on time rather than a falling collateral price. Its documented custom offers leave the lending asset in the lender's wallet until acceptance. Turret reserves the principal when an offer is published. That gives borrowers committed funding while making lenders give up use of that money during the offer period. PWN's lending-offer guide

Morpho's variable-rate markets pair a loan asset with collateral, an oracle and a liquidation threshold. Its fixed-rate Midnight markets also allow liquidation when a position becomes unhealthy, as well as after unpaid maturity. Fixed interest alone is therefore not a unique feature of Turret. Our direct loans instead settle through repayment or collateral forfeiture after the deadline. Morpho variable-rate markets and Midnight

Liquity V2 lets borrowers mint BOLD against ETH, wstETH or rETH, without a scheduled repayment date. Turret P2P lends existing USDG supplied by another wallet for a fixed term. It does not mint a new stablecoin when a borrower accepts. Liquity's borrowing documentation

Turret's focus is lending against our supported assets on Robinhood Chain, including stock and ETF tokens, with direct loans and pooled positions managed in one application. The core P2P idea is established. The quality of Turret's marketplace will depend on useful collateral coverage, funded offers, clear terms and reliable execution.

Before funding or accepting a loan

Borrowers should check the exact collateral quantity, total repayment and final deadline. Lenders should consider the outcome in which they receive the collateral rather than USDG. Active loan principal cannot be withdrawn on demand, and neither principal recovery nor interest is guaranteed.

Turret P2P has automated tests and internal review. It has not undergone an external audit. The current product is in beta, and token, contract and network risks remain.

Browse public offers to compare available terms. Portfolio shows your pooled positions, direct loans and available withdrawals.