How to Borrow
Step 1: Check Your Borrowing Power
Step 1: Check Your Borrowing Power
Navigate to the Borrow tab to see your available borrowing capacity based on supplied assets.What you’ll see:
- Maximum borrowing amount per asset
- Current interest rates
- Your total borrowing power across all collateral
Higher-quality collateral (ETH, BTC, blue-chip stocks) gives better borrowing rates.
Step 2: Select Asset to Borrow
Step 2: Select Asset to Borrow
Choose what you want to borrow (typically USDC for spending money).Common choices:
- USDC/USDT: For real-world expenses or opportunities
- ETH: For DeFi activities or trading
- Other tokens: For specific protocol interactions
Step 3: Enter Borrow Amount
Step 3: Enter Borrow Amount
Input how much to borrow, checking your Health Factor stays safe.
Keep initial Health Factor above 2.0 for safety. The interface shows this in real-time.
Step 4: Review & Confirm
Step 4: Review & Confirm
Check the loan details before confirming:
- Interest rate (APY)
- Health Factor after borrowing
- Liquidation price levels
First-time borrowers need one approval transaction before the actual borrow.
Step 5: Receive Borrowed Assets
Step 5: Receive Borrowed Assets
Assets appear in your wallet immediately after confirmation.
You can now use these funds while your collateral continues earning yield.
Step 6: Monitor Your Loan
Step 6: Monitor Your Loan
Track your position regularly through the dashboard:
- Current Health Factor
- Accrued interest
- Liquidation warnings
Set up price alerts for your collateral assets to stay ahead of market moves.
Safety Guidelines
Before you start borrowing, make sure you understand these key safety principles:Health Factor Management
Health Factor Management
- Always maintain above 2.0 for optimal safety
- Monitor daily when between 1.5-2.0
- Act immediately if approaching 1.2
- Never ignore liquidation warnings
Smart Borrowing Practices
Smart Borrowing Practices
- Start small with your first loan to learn the system
- Borrow conservatively at 50% of your maximum capacity
- Keep reserves to add collateral if needed
- Understand costs including interest and gas fees
Risk Management
Risk Management
- Diversify collateral across different asset types
- Set price alerts for major market movements
- Have a plan for market downturns
- Know liquidation levels for all your collateral