# Loan Self-Repayment System The **Self-Repayment System** allows veDUST holders to automatically use their governance rewards to reduce outstanding debt positions. When enabled, rewards that would normally be claimable to the user’s wallet are redirected to a dedicated **UserVault** contract. The vault swaps these rewards into the relevant debt asset and repays the user’s loan automatically. The vault swaps these rewards into the debt asset using the API provided by **Clober**, with fallbacks to **KyberSwap** and **Monorail**. The process is **entirely non-custodial** and can **be enabled or disabled at any time**. *** ###

Overview Self-repayment provides a way for active participants to improve their loan health passively. By routing earned rewards directly into repayment, borrowers maintain lower utilization, reduced liquidation risk, and a smoother compounding experience. Once enabled, all veDUST enrolled in self-repayment will automatically send their rewards to the user’s vault until the feature is turned off. *** ###

How It Works 1. **Enable Self-Repay**\

The user enables self-repayment for their veDUST.\

The system deploys a **UserVault** to that wallet (one vault per user). 2. **Reward Redirection**\

Rewards generated from the veDUST enabled for the self-repay system are sent to the user’s vault instead of their wallet.\

Each veDUST can independently opt in or out of self-repayment. 3. **Automated Execution**

A protocol executor once per epoch:

Claims rewards to the vault

Swaps reward tokens into the chosen debt asset

Repays the user’s loan on their behalf 4. **Disable at Any Time**

Disabling self-repay restores the default reward flow directly to the wallet.

All future rewards bypass the vault until the feature is re-enabled. *** ###

System Architecture

Component	Description
RevenueReward	Routes veDUST rewards to either the owner or their assigned vault.
UserVaultFactory	Deploys one vault per user when first enabling self-repay.
UserVault	Holds rewards, performs swaps, and repays debt positions.
UserVaultRegistry	Controls aggregator whitelists, slippage limits, and executor permissions.

The user retains full ownership of both their **veDUST** and **UserVault** at all times. The executor only has permission to perform the predefined automated functions. *** ###

Security and Safeguards

**Non-custodial:** Users remain owners of both the veDUST and the vault.\

**Slippage protected:** Swaps use Neverland oracle pricing to verify fair execution.\

**Whitelisted aggregators:** Only approved DEX aggregators are permitted.\

**Auto cleanup:** Self-repay is automatically disabled if the veDUST is transferred or merged.\

**Split inheritance:** If a veDUST is split, both resulting tokens retain self-repay status.\

**Recovery functions:** Users can recover ERC20 or MON from their vault at any time. *** ###

Behavior Summary

Action	Result
Enable self-repay	Rewards are redirected to the user’s vault
Disable self-repay	Rewards flow directly to the wallet
Transfer veDUST	Self-repay is disabled automatically
Split veDUST	Both new tokens inherit self-repay
Merge veDUST's	Self-repay is cleared for the merged token
Executor operation	Claims rewards, swaps them, and repays debt
Manual claim (disabled)	Rewards can still be claimed manually

*** ###

Operational Flow

*** ###

Key Properties 1. **One vault per user** – All enrolled veDUST share the same UserVault. 2. **Non-custodial design** – Ownership of rewards and loans never leaves the user. 3. **Automatic cleanup** – Self-repay is cleared on transfers or merges. 4. **Inherited splits** – New tokens after a split maintain self-repay status. 5. **Verified swaps** – All swaps are validated against oracle prices with capped slippage. 6. **Controlled access** – Only the authorized executor can trigger automation. *** ###

Why It Matters The Self-Repayment System connects governance rewards and lending behavior into a single automated cycle. It rewards users who actively participate in governance with real financial benefits, while reducing overall protocol risk by improving borrower health. Self-repay creates a continuous, closed loop:\

Governance rewards are earned by veDUST lockers.\

Those rewards automatically flow into the user’s vault.\

The vault repays debt, improving loan metrics and freeing borrowing capacity. The result is a sustainable, incentive-aligned mechanism where governance participation strengthens both the individual and the protocol. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.neverland.money/loan-self-repayment-system.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.