The borrow function allows a loan to be taken in any assets among the ones supported by the protocol.
Users can request a loan in the asset they wish to borrow if the chosen asset is supported on the protocol. To obtain a loan, it is necessary to lock an amount of a deposited asset as collateral. For safety reasons, the maximum borrowable amount each user can obtain has to be lower than the value of the correspondent collateralized amount. For each asset used as collateral, the protocol allows specific borrowable assets, with specific thresholds and parameters.
- 1.Reach the borrow page in the navigation bar of the web app.
- 2.Scroll among the several assets supported by the protocol, or find them through the search asset function. Select the asset you wish to borrow.
- 3.By clicking on the desired asset, a dedicated widget appears. Select the asset to use as collateral.
- 6.Click on the Borrow button to submit.
- 7.You will receive a message indicating success if the process has been completed properly.
To obtain a loan, the user must use all or part of the amount of the deposited asset as collateral. The collateral committed to obtaining the loan will be locked in an escrow account. If the user partially repays the loan, they may redeem the corresponding portion of their collateral. If they fully repay it, the whole collateral will be unlocked. Due to market volatility, the value of collateral assets may vary rapidly. In order to avoid liquidation, the user can add collateral through the rebalance feature.
An Escrow Account is an account that will hold the collateral of your loan until a withdrawal operation occurs.