Borrowers enjoy an interest-free loan structure, a significant advantage over traditional mortgage products. This means the cost of borrowing does not include any interest rate fees.

Liquid Ether enables homeowners to use their real estate as collateral to secure loans within the MakerDAO protocol, leveraging the stability and efficiency of blockchain technology.

Loans are denominated in US dollars for stability and clarity, but repayments are conducted using DAI, MakerDAO's stablecoin, ensuring a consistent payment value in a currency that's native to the DeFi ecosystem.

To secure these favorable loan terms, borrowers are required to stake a minimum of 10 MKR tokens for the duration of the loan, aligning the borrower's interests with the MakerDAO community.

A one-time flat processing fee of $2,500 is charged when the loan is initiated, which covers all the administrative and operational costs, including the smart contract setup on the blockchain.

Liquid Ether manages the intricacies of payment schedules and the smart contract governance, ensuring that repayments are made on time. In the event that a borrower defaults, Liquid Ether oversees the liquidation process, which is executed via the smart contract in a transparent and predetermined manner.