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Overview

Borrow USDC against ETH or BTC collateral with no liquidation risk. At expiry, repay and reclaim your collateral, or walk away and keep the USDC.

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How It Works

The Loan module wraps the LoanCoordinator contract, which uses Thetanuts V4 physically-settled call options under the hood. The flow:

  1. Deposit collateral (WETH or cbBTC) and specify a strike price and expiry

  2. Market makers compete to fill your loan via a sealed-bid RFQ auction

  3. Receive USDC minus borrowing costs (option premium + interest + protocol fee)

  4. At expiry, choose to exercise (repay USDC, get collateral back) or walk away (keep USDC, forfeit collateral)

No margin calls. No liquidation. Your collateral is locked in a smart contract, not lent out.

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Quick Start

import { ethers } from 'ethers';
import { ThetanutsClient } from '@thetanuts-finance/thetanuts-client';

const provider = new ethers.JsonRpcProvider('https://mainnet.base.org');
const signer = new ethers.Wallet(process.env.PRIVATE_KEY!, provider);
const client = new ThetanutsClient({ chainId: 8453, provider, signer });

// 1. Browse available strike/expiry combinations
const groups = await client.loan.getStrikeOptions('ETH');
const firstOption = groups[0].options[0];

// 2. Calculate exact loan costs
const calc = client.loan.calculateLoan({
  depositAmount: '1.0',
  underlying: 'ETH',
  strike: firstOption.strike,
  expiryTimestamp: firstOption.expiry,
  askPrice: firstOption.askPrice,
  underlyingPrice: firstOption.underlyingPrice,
});

console.log(`Receive: ${calc.formatted.receive} USDC`);
console.log(`Repay:   ${calc.formatted.repay} USDC`);
console.log(`APR:     ${calc.formatted.apr}%`);

// 3. Request the loan
const result = await client.loan.requestLoan({
  underlying: 'ETH',
  collateralAmount: '1.0',
  strike: firstOption.strike,
  expiryTimestamp: firstOption.expiry,
  minSettlementAmount: calc.finalLoanAmount,
});

console.log(`Loan ID: ${result.quotationId}`);

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Method Overview

Method
Description
Signer

requestLoan(params)

Deposit collateral and request a loan

Yes

acceptOffer(id, amount, nonce, offeror)

Accept an MM's offer (early settlement)

Yes

cancelLoan(id)

Cancel a pending loan request

Yes

exerciseOption(address)

Repay USDC and reclaim collateral at expiry

Yes

doNotExercise(address)

Walk away at expiry (keep USDC, forfeit collateral)

Yes

swapAndExercise(address, aggregator, data)

Swap collateral to USDC via DEX, then exercise

Yes

lend(id)

Fill a borrower's limit order with USDC

Yes

getLendingOpportunities(options?)

Fetch unfilled limit orders from indexer

No

getLoanRequest(id)

Query on-chain loan state

No

getUserLoans(address)

Get all loans for an address from indexer

No

getOptionInfo(address)

Get option contract details

No

isOptionITM(address)

Check if option is in-the-money

No

fetchPricing()

Fetch Deribit-style option pricing (30s cache)

No

getStrikeOptions(underlying, settings?)

Get filtered strikes grouped by expiry

No

calculateLoan(params)

Calculate exact costs (synchronous, BigInt math)

No

isPromoOption(strike, price, expiry)

Check promotional pricing eligibility

No

encodeRequestLoan(params)

Encode tx for viem/wagmi

No

encodeAcceptOffer(...)

Encode tx for viem/wagmi

No

encodeCancelLoan(id)

Encode tx for viem/wagmi

No

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Loan Cost Formula

All costs are computed in USDC (6 decimals) using BigInt arithmetic:

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Promotional Pricing

Loans qualifying for promo get reduced costs:

  • Eligibility: >90 days to expiry AND <50% LTV (strike/underlyingPrice)

  • Benefits: Option premium waived, borrowing rate fixed at 5.68% APR

  • Limits: $250,000 per person, $2,000,000 total pool

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Contract Addresses (Base)

Contract
Address

LoanCoordinator

0x9FB75b24d9d6f7c29D6BdE2870697A4FE0395994

LoanHandler

0x7c444A2375275DaB925b32493B64a407eE955DEd

USDC (settlement)

0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913

WETH (ETH collateral)

0x4200000000000000000000000000000000000006

cbBTC (BTC collateral)

0xcbB7C0000aB88B473b1f5aFd9ef808440eed33Bf

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See Also

PreviousPhysical OptionsNextBorrowing

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