Chip

CHIP is used to participate in protocol governance, including votes on updates to the protocol’s frameworks and key parameters.

Governance decisions can cover:

• Risk and eligibility rules for standardised loans (for example, what qualifies, how it is monitored and when it can be actioned).
• Pricing and interest-rate parameters that influence how credit is priced across defined categories rather than negotiated per loan.
• Fee configuration and fee routing, including how protocol fees are set and where they are directed within the system.
• Role-based permissions, such as approving or removing specific operational roles (for example, curators) and setting related constraints.
• Treasury decisions, including budget allocation for development, grants and other protocol initiatives.

CHIP can also be staked to receive a staking receipt token (often referred to as sCHIP). Staking links participants to the protocol’s risk backstop design, where stakers may be exposed to losses if the protocol needs to cover shortfalls.