The Abra Borrow product supports loans in AbraUSD. AbraUSD is the user's balance of all USD Coin (USDC), Binance USD (BUSD), Paxos (USDP), as well as True USD (TUSD) deposits. To be clear, AbraUSD is not a stablecoin it’s simply your balance of the above-mentioned stablecoins
Borrow amount will vary depending on your location. For any borrow arrangement, the agreed-upon amount reflects the value at which interest will be accrued. The loan would accrue interest.
Example: A user borrowing 10,000 AbraUSD at a 5% interest would accrue about 41.67 AbraUSD of interest per month.
This is calculated as:
10,000 AbraUSD borrow amount * 5%/year * (1 year / 12 months) = 41.67 AbraUSD