# Converge

## What is Converging?

Converging means opening a Position to borrow USV with SOL at 0% interest, and during the process, the collateral will be converted to interest-bearing JitoSOL.

## Position 

Position refers to the place where you withdraw and manage your loan. Each Position is associated with a Solana address, and each address is the sole owner of a Position. 

Users can open a Position by depositing SOL or JitoSOL as collateral on Convergent and receive USV. Positions hold two balances: one is an asset (JitoSOL) acting as collateral and the other is a debt denominated in USV. By adding collateral or repaying debt, these balances change, and your Position’s collateral ratio will adjust accordingly.

You can [diverge](https://docs.convergent.so/convergent/convergent-protocol-v1/diverge) your position at any time by fully paying off your debt.

## Why borrow with Convergent

Borrowing with Convergent is interest-free and capital-efficient. Instead of selling your SOL in exchange for liquid funds, Convergent allows you to lock up your SOL (maintain long SOL exposure and earn staking + MEV yield), borrow against the collateral to withdraw USV, and settle your loan later.

## Zero-interest Borrowing

Unlike other systems (such as MakerDAO) that implement variable interest rates which need to be managed via governance, Convergent opts for a fully decentralized approach with direct feedback through one-off fees. The protocol offers zero-interest borrowing by charging one-time borrowing fees. 

## Customizable LTV

Users have the flexibility to select any collateral ratio above 110% when opening a position based on their risk tolerance and investment timeframe. \
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For instance, if a user holds a positive outlook on SOL and anticipates its value to appreciate, they might opt to open a position with a collateral ratio close to the minimum requirement (i.e. 120-150%). During periods of market volatility or downward price movement, users may prefer to open Positions with higher collateral ratios or top up collateral to their existing positions to avoid liquidations.