Osito Protocol Documentation
Osito enables any new token to serve as collateral for wBERA loans and earn wBERA yield immediately after launch.
What Osito Does
Osito has two core functions, both available to any token that meets verifiable, on-chain criteria:
- Borrow wBERA using your token as collateral immediately after launch
- Earn wBERA yield by staking your token without taking on debt
No governance approvals. No price oracles. No token whitelisting. Just pure math securing the protocol.
How It Works
Osito uses two simple mechanisms:
Safe Lending Formula
Instead of asking "what is this token worth?" Osito asks "how much wBERA could be extracted if all circulating tokens were sold at once?"
max_borrow = pool_BERA - worst_case_impactSee Full Formula →Two Eligibility Requirements
Any token qualifies for Osito if it meets these verifiable criteria:
- Fixed Supply: Must have a provably fixed token supply
- Burned LP: Must have verifiably burned LP tokens
Three Ways to Use Osito
The protocol has three simple participant types:
Supply wBERA
Lend your wBERA to earn high yields from borrowers who can't get loans elsewhere
Borrow wBERA
Use your tokens as collateral to borrow wBERA without selling your tokens
Stake Tokens
Lock your tokens to earn wBERA yield without taking on debt
Key Technical Features
Real-Time Security
Fetches fresh AMM data at each transaction to maintain protocol solvency
Read More →Why This Works
Osito's security comes from:
- Worst-Case Math - Assumes all circulating tokens dump at once
- AMM Price Impact - Uses x*y=k formula to calculate price impact
- No Governance - Programmatic verification of all requirements
- No Oracles - No price feeds that can be manipulated