Borrowing from a pool allows you to use your crypto assets as collateral to access liquidity (stable coins) without selling your crypto. This helps protect your crypto from market volatility.
How to borrow crypto assets from a pool
Step 1: Connect your wallet to the platform.
Step 2: Navigate to the pool of your choice and select 'Borrow'.
Step 3: Input the amount you'd like to borrow, and the system will automatically calculate how much collateral is needed based on the pool’s ratio.
Step 4: Confirm the transaction in your wallet to complete the borrowing process.
How interest is calculated
Interest on your loan accrues every minute while your borrowing position is open, up until the pool’s maturity date. To check the interest rate, simply review the APY (annual percentage yield) for the pool. Your total interest is based on how much you borrow and how long your loan remains open.
Paying back your loan
Step 1: Go to the 'Borrowed' page to view all your open loan positions.
Step 2: Select the loan you want to repay.
Step 3: Review the details of your loan, including the amount borrowed, interest accrued, and total repayment amount.
Step 4: Confirm the repayment and sign the transaction in your wallet to get your collateral back.