Skip to main contentBorrow Stablecoins
Understanding Borrowing
Borrowing allows you to access liquidity while maintaining exposure to your collateral.
Prerequisites
- Have compatible collateral tokens
- Understand liquidation risks
- Monitor interest rates
Step 1: Deposit Collateral
- Navigate to the borrowing section
- Select your collateral type
- Enter the amount to deposit
- Confirm the deposit transaction
Step 2: Borrow Stablecoins
- Choose the stablecoin you want to borrow
- Enter the borrow amount
- Review the collateralization ratio
- Confirm the borrow transaction
Step 3: Monitor Your Position
- Track your health factor
- Monitor interest accrual
- Be prepared to add collateral if needed
Step 4: Repay or Adjust
- Repay debt to reduce interest costs
- Add more collateral to improve health factor
- Partially repay to free up collateral
Risk Management
- Maintain healthy collateralization ratios
- Monitor liquidation thresholds
- Have contingency plans for market volatility
