Frequently Asked Questions

Ctrl+F is your compass

What is Health Factor?

• The Health Factor reflects the safety of your debt position against liquidation. A Health Factor above 1 means your deposited assets outweigh your debt. Conversely, a Health Factor below 1 signals a risky position where your assets' value is lower than your debt. In such cases, your collateral may be liquidated to repay the debt and uphold the protocol's solvency. See Basics of Borrowing for more information.

When will I get liquidated?

• Liquidation happens when your Health Factor drops below 1. Changes in the value of your supplied collateral and borrowed assets can affect your Health Factor. See Basics of Borrowing for more information.

How much will I earn from supplying assets?

• Depositors can generate passive income by supplying their assets. When more people borrow from Pike and utilize a greater portion of Pike deposits, the interest rate charged to borrowers increases, leading to higher interest earnings for depositors. See Basics of Borrowing for more information.

How much I can borrow?

• Borrowers can borrow up to 75% of the value of the deposited collateral (liquidation threshold). Pike provides a simulation of the change in Health Factor based on the supplied collateral and the intended borrowing amount. Borrowers should ensure their Health Factor remains above 1.

What’s the borrowing interest rate model?

• The supply interest rate is dependent on the deposited assets. See Interest Rates for more information.

Why I can’t repay even if I have assets?

• A common reason for being unable to repay your asset is that your funds are already supplied into Pike and not in your wallet. To repay the debt, ensure three things: 1) you are on the correct blockchain network, 2) you have sufficient assets in your wallet for repayment, and 3) you have ETH to cover gas fees.

Why I can’t borrow or withdraw my funds?

• The most common reason you can't borrow or repay your assets is because you don't have ETH on the Base network to cover transaction fees. All borrow and withdraw transactions are executed on the Base network. This applies to any asset, including OP, ARB, USDC, or ETH. Gas fees on the Base network are paid in ETH.

Why do I have assets but can’t supply them?

• A common reason for being unable to supply your assets is insufficient gas to cover the transaction fees. Gas fees on Ethereum, Optimism, Arbitrum, and Base networks are paid in ETH. For instance, if you're depositing USDC from the Optimism network, you need USDC in your Optimism network wallet and ETH to cover gas and transaction fees from your Optimism network wallet. Additionally, Pike does not support deposits and borrows of ETH onto an L2 Network (Optimism, Base, and Avalanche).

Is there a cap for supply/borrow?

• Pike has set supply caps for the initial mainnet launch, with per-wallet limits: 0.1 ETH, 100 USDC, 10 OP, and 10 ARB. Pike prioritizes the safety of our community and user funds and supply caps will be lifted gradually. Pike is undergoing an audit with OtterSec, one of the strongest smart contract auditors in Web3.

Can I disable my supplied assets from being used as collateral?

• Pike does not currently offer the functionality to disable supplied assets from being used as collateral. However, this feature will be enabled in future updates.

Are flash loans enabled on Pike?

• Pike does not currently offer flash loans.

Why do I have to approve every deposit and repay transaction?

• A token approval authorizes Pike to transfer your tokens, enabling transaction actions such as supplying and repaying. This feature is inherent to the blockchain network, and approvals are necessary for all DeFi applications. Token approvals are token and network-specific. For example, if you approve USDC spending on Ethereum, you require a separate USDC token approval on Arbitrum. The approval amount indicates the maximum cumulative spend authorized. Pike does not currently provide an unlimited approval option.

How do I get ETH for gas fees?

• When supplying and repaying assets, gas fees are paid in ETH for Ethereum, Optimism, Arbitrum, and Base. When borrowing and withdrawing, gas fees are paid in ETH on Base. Users can use the Portal Token bridge to bridge ETH.