# Resulting Trilemma

# Among the many difficulties in designing a perfect on-chain borrowing solution, a few stand out among the rest.

How do you design a DeFi borrowing solution with...

1. High LTVs
2. Stable assets
3. No liquidations

While it may seem impossible, a solution was actually devised 20+ years ago on Wall Street: the prepaid variable forward, often referred to as a collar. This structure allows users to agree to sell an asset within a defined price range at a future date in exchange for an upfront cash payment. It preserves economic exposure to the underlying asset — meaning borrowers don't have to give up potential upside — and, in traditional markets, it's even used to defer capital gains taxes and enable estate planning strategies like the step-up in basis.

We're bringing it to DeFi with the advent of Votre.