# Borrow with No Interest/No Liquidation Risk

Using vWIG as Collateral as delineated in the preceding section, the bonding curve's mechanism ensures the perpetual backing of 1 WIG by a minimum of 1 ETH. This innovative setup underpins a borrowing mechanism, particularly relevant when utilizing vWIG as collateral. Given that the value of 1 WIG consistently equals or exceeds 1 ETH, holders of vWIG can effectively borrow up to 1 ETH for each vWIG they have staked. This borrowing process unfolds without any exposure to liquidation risk, as the borrowed ETH's valuation is perpetually safeguarded by WIG tokens.

<figure><img src="/files/yIxDSiciKa6yUbZaO8qY" alt=""><figcaption><p>liquidation free toupee clients</p></figcaption></figure>

The absence of liquidation risk and the omission of interest engender a borrowing experience that's both appealing and devoid of undue stress for users, setting it apart from traditional DeFi lending platforms. Furthermore, the design of the system obliterates the potential for non-performing debt, as the value of WIG tokens constantly remains equivalent to or surpasses the borrowed ETH, thereby ensuring the stability of the protocol.


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