# GBOND Lending (Unlocked GBOND Utility)

When a user unlocks their GBOND (see heading 7.1. above for details) they can choose from options which present them with utility for their credit rights.

The first of these is the GBOND lending protocol, where users can borrow against their credit rights. After unlocking their GBOND users can deposit GBOND into the Lending Protocol and borrow USDC against the amount of GBOND deposited.

USDC is a stablecoin issued by Centre; a joint venture of Circle Internet Financial Limited and Coinbase Global, Inc., and the value of USDC is pegged to the value of the US dollar. Users may deposit as much GBOND as they wish into the Lending Protocol to borrow against.

### Borrowing Limits and Interest Rates in the Lending Protocol

Initially the borrowing rate of USDC within Galaxy DAO will be set at 5%.

GBOND is issued at a rate of 1 GBOND/1 USD, which means users can borrow 0.05 USDC for every 1 GBOND they deposit into the Lending Protocol.

The USDC a user borrows through the Protocol will be from Galaxy DAO’s supply of USDC. Galaxy DAO plan to raise the borrowing limit as the overall earnings of the DAO increase. The latest borrowing limit (rate) can be checked on the Boardroom platform (released late August 2023.

#### USDC Supply and Borrowing Limit (rate) Examples

| Date                  | USDC Supply (Total Supply)                    | Borrowing Limit (rate)                        |
| --------------------- | --------------------------------------------- | --------------------------------------------- |
| September 2023        | 1,000,000 USDC                                | 5%                                            |
| October 2023          | 1,200,000 USDC                                | 5.5%                                          |
| November 2023         | 1,400,000 USDC                                | 6%                                            |
| December 2023 Onwards | Increased based on the earnings of Galaxy DAO | Increased based on the earnings of Galaxy DAO |

Users may pay back the USDC whenever they wish. Finer interest rate details will be detailed in the full upcoming Galaxy DAO Whitepaper (for example when details regarding when a borrowed pays USDC back within a period of a year etc.).

{% hint style="info" %}
Please note: the above utilities are proposed and are subject to change. Further details will be elucidated in the full Galaxy DAO Whitepaper due for release at a later date.
{% endhint %}


---

# Agent Instructions: 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:

```
GET https://galaxy-dao-1.gitbook.io/docs/gbond-lending-unlocked-gbond-utility.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
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.