> For the complete documentation index, see [llms.txt](https://docs.usefarlight.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usefarlight.com/assets/usdg.md).

# USDG as the settlement currency

Every Farlight loan is funded, accrued, repaid and liquidated in USDG. This page explains the choice and the unit arithmetic that follows from it.

Farlight settles in one currency. Principal, interest, fees and the proceeds of any liquidation auction are all denominated in **USDG**, the Paxos Global Dollar.

## Why USDG

| Reason                       | Consequence for Farlight                                                                                                           |
| ---------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- |
| Native issuance              | USDG is minted directly on Robinhood Chain rather than bridged in, so there is no bridge anywhere in the settlement path.          |
| Lending already runs on it   | Robinhood Earn, the chain's first lending product, operates on USDG through Morpho. Liquidity and integrations were already there. |
| Regulatory footing           | USDG is regulated under MiCA in the EU. That matters for a protocol whose main market is the EEA.                                  |
| Fits the idle-capital design | The whitelisted Morpho vault that receives [parked capital](/protocol/idle-capital.md) holds USDG.                                 |

## Adding a second loan currency

`loanToken` is part of the market key, so a new loan currency means a new, isolated market configuration. Loans already open are unaffected. Two candidates are on the list:

* **USDe**, already present on Robinhood Chain.
* **USDC over CCTP**, once bridged liquidity on the chain is confirmed.

No currency is added until three things are true: bridged liquidity is confirmed, the token's pause and blacklist behaviour has been reviewed, and an idle-capital vault exists for it. The addition then goes through the timelock like any other parameter change.

## Decimals and rounding

USDG carries 6 decimals and Stock Tokens carry 18. `PriceGate` returns a price in loan-token base units per whole collateral token, and `LoanDesk` values collateral as `amount × price / 10^collateralDecimals`. Every LTV and interest figure therefore stays in loan-token units from start to finish. The invariant suite checks this arithmetic.


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