LiquidLoans Review 2026: 0% Interest Borrowing on PulseChain & Base

LiquidLoans is a decentralized borrowing protocol that runs on PulseChain and Base. Users lock ETH or PLS in a vault and mint USDL, a stablecoin the project says is backed by that collateral. The core pitch is borrowing at 0% interest while keeping exposure to the assets you hold, which the project promotes as the #NeverSelling idea.

The protocol is listed in DeFi data under CDPs, with roughly $1.9M in total value locked and the LOAN token as its native asset. Its listed description stresses a low 110% collateral ratio, no repayment schedule, immutability, no governance and no admin keys.

The homepage reports usage figures: over 9,000 connected wallets, more than 1,500 vault owners and about $6.1M of USDL minted. These are the project's own numbers. Its marketing is promotional, including a comparison of a vault return against gold and a savings account, so treat those claims with caution.

The design suits users who already hold ETH or PLS and accept liquidation risk. Fee details beyond 0% interest, the team and the audit report are not set out on its homepage reviewed.

LiquidLoans is a collateralized debt position (CDP) system. You deposit ETH or PLS into a vault, a smart contract you control. Against that deposit you can mint USDL, a stablecoin the project says is fully backed by locked collateral.

You do not pay interest on the minted USDL, and there is no due date. To get your collateral back, you return the USDL you minted and close or reduce the vault. While the loan is open, your collateral must stay above the minimum ratio, listed as 110%.

If the collateral value falls too close to your debt, the position may be liquidated, as in other DeFi lending systems. The project says the contracts are immutable and have no admin keys or governance, so rules are fixed by code rather than votes. The LOAN token and staking options sit alongside the borrowing system.

The headline fee is 0% interest on minted USDL, and the project says this will always be the case. There is no repayment schedule and no stated ongoing borrowing rate.

The homepage does not publish other charges, such as one-time borrowing fees, redemption fees or network gas costs. It does say users have earned more than $11M in fees since launch, which implies some fee flows exist. Check the vault screen in the app and the docs for exact figures before borrowing.

The main risk is smart-contract and liquidation risk. With a 110% minimum collateral ratio, a sharp drop in ETH or PLS can trigger liquidation of your vault. Borrowing well below the maximum gives more protection. Immutable contracts mean no admin can pause or rescue the system, which limits abuse but also means bugs cannot be patched.

The homepage says the protocol was audited by Halborn and has never been paused or frozen. The DeFi data checked lists no audits, and the report details are not shown in the text reviewed, so verify the audit through the docs. One third-party rating site flags concerns about the LOAN token, and the team behind the protocol is not named in the material reviewed. The project does not publish a regulatory status. Check the rules where you live before using it.

LiquidLoans fits long-term ETH and PLS holders who want a stablecoin loan without selling and who can monitor a vault. It is less suitable for beginners, anyone who needs a guaranteed peg or deep liquidity, or users unwilling to accept liquidation and smart-contract risk.