Borrowing guide showing how to access cash without selling investments
Access cash without selling your investments. This guide walks you through exactly how to borrow on Edel Finance and manage your loan safely.

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The Simple Explanation

Think of it like a pawn shop, but better:
  1. You bring valuable assets (your crypto or stocks worth $10,000)
  2. The protocol lends you cash (up to $7,000 in stablecoins)
  3. You keep ownership (still earn dividends, price gains, and lending yield)
  4. Pay back whenever (no fixed schedule, just pay interest)
  5. Get your collateral back (once you repay the loan + interest)

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Wealth Management Applications

Tax Optimization

Access capital without triggering capital gains on appreciated crypto or tokenized stocks

Diversification

Rotate crypto gains into high-quality tokenized stocks and RWAs without selling your core holdings

Taking Profits

Lock in value by borrowing against volatile assets and deploying into safer, yield-bearing opportunities

DeFi Opportunities

Tap liquidity for stablecoin farming, hedging, or participating in new token launches—all without selling

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Real Borrowing Examples

Your Collateral: 10 ETH (worth $25,000)Borrowing Details:
  • Max borrow (80% LTV): $20,000
  • Safe borrow (50% LTV): $12,500
  • Interest rate: 5% APY
Monthly Costs:
  • On USD12,500 borrowed: ~USD52/month interest
  • Your ETH still earns: ~USD58/month from lending
  • Net cost: Actually earning USD6/month
Your collateral earning can offset borrowing costs.

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Common Questions Answered

It depends on your collateral quality:
  • Blue-chip stocks (AAPL, TSLA): Up to 50% of value
  • Major crypto (ETH, BTC): Up to 90% of value
  • Stablecoins: Up to 90% of value
  • Smaller tokens: 40-60% of value
There’s no “due date” - your loan continues as long as your Health Factor stays above 1.0. If markets move against you and Health Factor drops below 1.0, the protocol automatically sells just enough collateral to bring you back to safety. You keep any remaining collateral.
Interest compounds every second based on current market rates. For example:
  • Borrow $10,000 at 5% APY
  • Daily interest: ~$1.37
  • Monthly interest: ~$41.67
  • Pay back anytime: $10,000 + accumulated interest
Yes! You can:
  • Add collateral: Improve Health Factor anytime
  • Remove excess: Withdraw if Health Factor stays above 1.0
  • Switch collateral: Swap between assets without closing loan
  • Top up: Add more if approaching liquidation
No catch, but understand the risks:
  • Market drops can trigger liquidation
  • Interest rates vary with demand
  • Gas fees for transactions (on Ethereum)
  • Smart contract risk (mitigated by audits)

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Next Steps

Strategic Use Cases

Advanced strategies for maximizing borrowing benefits

Liquidation Protection

Deep dive into liquidation mechanics and protection strategies