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General

Varla is lending and risk infrastructure for prediction markets. You can borrow stablecoins (USDC/USDT) against your prediction market positions without selling them, and you can lend stablecoins to earn yield from borrower interest.
Varla is live on:
  • Polygon: Polymarket positions (USDC)
  • BSC: Opinion Protocol positions (USDT)
No. Collateral is held by the protocol’s on-chain VarlaCore contract — not a company or individual. The smart contract enforces all rules. Withdrawals follow on-chain conditions (health factor must remain safe).See also: Custody
Key features:
  • Cross-margin: Portfolio-level collateral management, not isolated positions
  • Tiered LTV: 50-80% LTV based on market risk tier
  • Permissionless liquidations: Fully on-chain with variable bonus (5-15%)
  • Multi-chain: Live on Polygon (Polymarket) and BSC (Opinion)
See: Protocol Features

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Borrowing

Polygon (Polymarket) uses USDC. BSC (Opinion) uses USDT.
Borrowing power depends on your collateral’s risk tier:
  • Conservative tier: up to 80% LTV
  • Moderate tier: up to 65% LTV
  • Risk tier: up to 50% LTV
Your total borrow limit is the sum of each position’s LTV-weighted value.
Your position is liquidatable when health factor < 1.0.Health factor = (LTV-weighted collateral value) / debtLiquidation can still be temporarily blocked by oracle safety guards (stale prices or grace periods).
Varla treats collateral with an unavailable oracle price (stale/invalid) as worth $0 for borrowing power. This is a safety choice to avoid protocol-wide failures when oracle data is missing.Once the oracle updates, your borrow power will return to normal.
No. Varla enforces a 1-minute minimum borrow duration before repayment is allowed. This prevents flash loan attacks and manipulation.
The minimum borrow is 10 units of the collateral token (10 USDC or 10 USDT). Partial repays cannot leave debt below this threshold — you must repay to zero or keep at least 10 units borrowed.
When a market resolves:
  • Your position becomes worth its final outcome value (0or0 or 1 per share)
  • If your position loses value, your health factor may drop
  • If HF < 1.0, liquidation can occur
  • After resolution, the position can no longer be used as collateral for new borrows
Varla also applies early-closure rules near resolution to reduce risk.

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Lending

Deposit USDC (Polygon) or USDT (BSC) into the VarlaPool. You receive ERC-4626 vault shares. As borrower interest accrues, the share price increases — your shares become worth more over time.
Rates are dynamic and depend on pool utilization:
  • Lower utilization = lower APY
  • Higher utilization = higher APY
The interest rate model uses a kinked curve — rates increase faster above 80% utilization.
The lending pool can only pay out funds that aren’t currently borrowed. Withdrawals are limited by available liquidity (cash in the pool minus the protocol reserve).At high utilization, you may need to wait for borrowers to repay before withdrawing.
No. You can withdraw anytime, subject to available liquidity.
Varla has multiple protections:
  1. Permissionless liquidations ensure unhealthy positions are resolved quickly
  2. 10% reserve fee on borrower interest funds first-loss coverage
  3. Conservative oracle pricing prevents inflated collateral values
If bad debt occurs, the reserve fund absorbs losses first. Only remaining shortfall is socialized to lenders.

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Risk & Liquidations

Liquidation occurs when health factor < 1.0.Unlike some protocols with separate “liquidation threshold” and “LTV,” Varla uses health factor as the single measure. Your health factor = collateral value (after LTV weighting) / debt.
Liquidators receive a variable bonus based on how unhealthy the position is:
  • Near HF 1.0: ~5% bonus
  • Near HF 0.8: ~15% bonus (max)
This ensures positions get liquidated when needed while minimizing costs to borrowers with marginally unhealthy positions.These are protocol defaults — governance can adjust the bonus curve, per-tier maximums, and per-position overrides.
As markets approach resolution, risk increases. Varla applies early-closure rules:
  • Deposits may be blocked in the final days before resolution
  • Effective LTV may decrease (reducing borrow power)
This gradually unwinds exposure and reduces the risk of bad debt from volatile resolution behavior.
Yes, temporarily. Liquidation is blocked when:
  • Any collateral position has an unavailable oracle price (stale/invalid)
  • The oracle just recovered from a stale period (grace window)
This protects users from being liquidated during temporary oracle issues.

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Technical

Varla supports any EVM-compatible wallet:
  • MetaMask, Trust Wallet, Rainbow, Rabby
  • Gnosis Safe (used by Polymarket)
  • WalletConnect-compatible mobile wallets
  • Hardware wallets (Ledger, Trezor via WalletConnect)
  • Email/social login via Privy (for Polymarket users who signed up with email)
See: Wallet Requirements
Two approvals:
  1. ERC-1155 approval: Allow VarlaCore to transfer your prediction market positions
  2. ERC-20 approval: Allow VarlaCore to pull USDC/USDT for repayment
Both are one-time per token contract.
Varla is undergoing security audits. Audit reports will be published when complete.See: Security Audits
All deployed contracts are verified on block explorers:See: Contract Addresses