No, Rocko is not a lender. Rocko is a technology platform that simplifies borrowing from popular Defi protocols like Compound.
Does Rocko charge a fee?
More info on fees will be shared closer to launch.
Which crypto assets can I use as collateral for my loan?
Rocko only supports Ether (ETH) as collateral at this time but is working to support new collateral assets.
What are the benefits and risks of crypto loans from DeFi protocols vs. traditional loans?
Generally, DeFi protocols can offer greater transparency, more flexible loan terms, and lower rates than many traditional lenders. However, users can experience loss of funds in the event of software bugs or exploits. Learn more about the benefits and risks of DeFi borrowing here.
Which DeFi protocols can I borrow from using Rocko?
All Rocko users can borrow USDC. Rocko users with a Coinbase or Gemini account in the U.S. can opt to have their USDC loan automatically converted into USD. Rocko is working to provide this feature to more users.
Do all loans require over-collateralization?
Yes, Compound III currently requires all loans to be over-collateralized, meaning that the value of the collateral pledged is more than the loan. This is not expected to change.
Is a credit check required?
No. No credit check is required to receive a loan using Rocko.
Will getting a DeFi loan using Rocko impact my credit score?
No, it will not impact your credit score.
Was it the maximum amount I can borrow?
The maximum amount you can borrow is determined by the value of your collateral and Compound’s available liquidity for the loan asset. Generally, the amount of available liquidity for USDC is in the millions of dollars.
How is the interest rate determined?
Lending protocols like Compound use formulas based on supply and demand to calculate interest rates. Learn more here.
What happens if I don’t repay my loan?
If your loan exceeds the maximum allotted loan-to-value ratio, whether through not repaying it or another reason, your collateral will be liquidated (i.e. sold for USDC) and Compound will take a fee. To learn more about liquidation and how to avoid it, read more here .
What are the tax implications of getting a DeFi loan through Rocko?
Generally, using your crypto as collateral for a loan is not considered a taxable event as long as your crypto is not sold or exchanged. The tax implications for wrapping tokens — such as ETH for WETH — is unclear, as the IRS has not issued specific guidelines on this topic. This content is for informational purposes only and is not tax or legal advice. Please consult your tax advisor for further guidance.