Welcome to the official documentation hub of Palomino.fi! Please note that this site is still under construction and may update frequently 🛠️
Palomino Finance is Saga’s native lending protocol, forked from dTRINITY. In partnership with Colt Stable, Palomino Finance is powered by subsidized borrowing markets for the Saga Dollar (D) which are minted on app.coltstable.com.
On top of the existing v3 features and mechanics which can be referenced through Aave’s documentation, Palomino incorporates several unique features that enable lower credit costs and better yields for protocol users.
Saga Dollar money markets are the credit engine of the Palomino Finance ecosystem. Lenders who supply tokens in Saga Dollar money markets on Palomino Finance can earn yields and rewards from ecosystem partners and/or the protocol. Borrowers can then supply multiple collateral assets to borrow Saga Dollar (D) tokens and earn interest rebates as well as intrinsic yields/points from their collateral (as applicable).
Palomino Finance enhances user experience by consolidating lending and borrowing into the Saga Dollar asset. Borrowers benefit from exogenous interest rebates, which lower net borrowing costs below market rates—making Palomino Finance an ideal platform for leverage and yield-looping strategies. These subsidies also drive sustained credit demand, pushing utilization to consistently high levels. As a result, Saga Dollar (D) Supply APYs on Palomino Finance may rise above market rates, delivering superior yields to lenders and reducing their opportunity costs.
Most importantly, subsidized borrowers don’t need to employ as much leverage to achieve a similar return profile compared to using unsubsidized stablecoins. This reduces risk while still maintaining attractive yields, making leverage/looping strategies more capital-efficient and resilient on Palomino Finance.