> For the complete documentation index, see [llms.txt](https://docs.usegimbal.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usegimbal.app/collateral/usdg.md). # USDG, the loan currency Why every Gimbal loan is denominated in USDG, what it would take to enable a second loan currency, and how the contracts keep the decimals straight. One loan currency, everywhere. Principal is drawn in USDG, interest accrues in USDG, fees are taken in USDG, and a collateral auction clears in USDG. The token is the Paxos Global Dollar. ## The case for it * **Issued on the chain itself.** USDG is minted natively on Robinhood Chain. No bridge sits anywhere between a lender's wallet and a borrower's. * **Already the chain's lending asset.** Robinhood Earn, the first lending product on the network, runs on USDG through Morpho, so liquidity and integrations were in place before Gimbal. * **MiCA regulated.** For a protocol whose primary market is the EEA, a stablecoin regulated in the EU matters. * **Matches parked capital.** The whitelisted Morpho vault that holds [capital parked between fills](/mechanics/parked-capital.md) is a USDG vault. ## How the contracts pin it `PolicyBoard.setLoanTokenEnabled` is the switch. `PriceSentinel.configureFeed` pairs each collateral token with exactly one loan token, and the desk rejects any request that names a different one (`LoanTokenMismatch`). A loan currency is therefore part of what defines a market, not a free choice on each request. ## Unit arithmetic USDG has 6 decimals. Stock Tokens have 18. The sentinel rescales the Chainlink answer and hands back the price of one whole collateral token, expressed in the loan token's base units. The desk then multiplies the escrowed amount by that price and divides by ten to the power of the collateral's decimals, which it reads from `PriceSentinel.collateralDecimals`: ``` value = amount * price / 10^collateralDecimals ``` From that point on every LTV, health factor and interest figure is expressed in loan-token units. `test/Invariants.t.sol` exercises this arithmetic in the [assurance suite](/architecture/assurance.md). ## A second currency Because the loan token is part of the market definition, adding one creates a new, isolated market. Open loans do not notice. Two names are under consideration: * USDe, already live on the chain. * USDC, arriving over CCTP, when its bridged liquidity has been verified. Three conditions have to hold before either is enabled: confirmed liquidity, a review of how the token pauses and blacklists, and a whitelisted vault for parking it. Enabling it is a timelocked batch, the same as any other parameter. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.usegimbal.app/collateral/usdg.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.