Overview

Introduction to the Positions Finance protocol and its core concepts

Documentation is actively being worked on and may not have complete information.

Overview

Positions Finance is a composable collateral protocol. Its primary function is to enable users to turn yield-generating, staking, or otherwise locked assets into on-chain collateral that is usable across a broad range of DeFi applications—without interrupting yield or requiring asset transfers, wrapping, or duplication.

Core Innovation: Proof-of-Collateral

The core of Positions Finance is the Proof-of-Collateral mechanism. This formally records a user’s on-protocol positions (deposits, yield balances, open debts, and collateral availability) in a single, dynamic on-chain primitive. Users retain full exposure to staking or vault rewards, while this same locked principal is recognized as collateral—enabling borrowing and composability across multiple protocols and chains without redundant asset transfers/bridging, wrapping, or idle capital.

How It Works

From a user’s perspective, interacting with Positions Finance means:

1. Deposit Assets

   Supply your tokens to vaults or liquidity pools (e.g., Polymarket Vault, Berachain Reward Vaults) to start earning, or turning those into Collateral.

2. Retain Bets/Yields

   Keep your Polymarket Bets live or continue to earn rewards or yield (if applicable) on your deposited positions without interruptions.

3. Translate value into your Proof-of-Collateral

   Receive a Proof-of-Collateral that represents your staked or deposited bet or position.

4. Use as Collateral

   Use your collateral across integrated DeFi apps — with live tracking of your collateralization and debt levels.

5. Borrow, Loop, or Leverage

   Simply Borrow liquidity on Positions’s Lend/Borrow Market or deploy advanced strategies like betting more, going delta neutral, looping for yield, or leveraging on perps — all backed by your active collateral.

Core Components

Vaults

Deposit supported assets into secure vaults. Balances are tracked precisely, rewards accrue automatically (if any), and all activity is translated into your Proof-of-Collateral for transparent on-chain accounting.

Proof-of-Collateral (PoC)

Acts as the protocol’s real-time state engine—tracking every user’s deposits, earned yield, borrowing activity, and collateral health. Provides a single source of truth for protocol functions and external composable integrations.

Lend/Borrow Market

Unlock liquidity against your productive collateral without unstaking or withdrawing. Borrowing limits are enforced by live PoC data, ensuring both lender safety and user access to funds—interest rates adjust by protocol parameters and market demand.

Leveraged Loops

Amplify exposure and potential yield with over-collateralized borrowing and looping assets back into vaults against your collateral.

Core Features and Principles

Retain-First Design

Keep your bets/positions active to earn optimized returns by supplying assets to high-yield lending pools and ecosystem vaults—across chains.

Proof-of-Collateral (PoC)

Every deposit translates value into your PoC—tracking both principal and accrued yield in real time, forming the basis for all collateral utility.

Collateral That Stays Productive

Use your yield-generating deposits as collateral while continuing to earn rewards—no need to unstake or move assets.

Unified & Composable Collateral

PoC NFT premitive is composable and chain-agnostic—enabling use across partner protocols for borrowing, margin, and advanced DeFi strategies.

Composable Infrastructure

Positions’ architecture enables integrations with any protocol, turning idle capital into active collateral across the ecosystem.

Learn more –

Proof-of-Collateral

Protocol Overview