Borrowing
Get liquidity without selling your tokens.
What Is DeFi Borrowing?
Borrowing is getting tokens against your assets as collateral. You deposit collateral and receive a loan in stablecoins or other tokens.
Why? Say you have ETH and believe in its growth. But you need USDC now. Instead of selling ETH, you deposit it as collateral and get USDC — while keeping your position in ETH.
How to Borrow
Go to the Borrow section
Select network and market
Supply collateral — e.g., ETH or WBTC
Select token to borrow — e.g., USDC
Enter amount — the system shows Health Factor
Confirm with biometrics
Key Metrics
Health Factor
Position health. > 1 = safe, < 1 = liquidation
LTV (Loan-to-Value)
Loan-to-collateral ratio. E.g., 75% = borrowed $75 against $100 collateral
Liquidation Threshold
Threshold at which collateral can be liquidated
Borrow APY
Annual interest rate on the loan (you pay this)
Health Factor — Detailed
> 1.3
Safe
🟢 Green
1.1 – 1.3
Caution
🟡 Yellow
1.0 – 1.1
Danger
🔴 Red
< 1.0
Liquidation
🔴 Critical
Supported Protocols
AAVE
Largest lending protocol, operates on 5 networks
Compound
One of the first DeFi protocols, stable and reliable
Supported Networks
Base, Ethereum, Arbitrum, Optimism, Polygon
Token Types
Collateral: ETH, WBTC, USDC, USDT, DAI and other major tokens
Borrowable: Primarily stablecoins — USDC, USDT, DAI
Position Management
After opening a loan you can:
Add collateral — increase Health Factor
Withdraw some collateral — if Health Factor allows
Repay partially — reduce debt
Fully repay — close the position
FAQ
What is liquidation?
If collateral price drops significantly and Health Factor falls below 1, the protocol automatically sells part of your collateral to cover the debt. This protects lenders.
What's the max LTV?
Depends on the token. ETH is usually 80%, stablecoins up to 85%. We recommend not exceeding 60–70% for safety.
How much does borrowing cost?
Borrow APY is a variable rate, usually 2–8% annually for stablecoins. Depends on market demand.
Last updated
Was this helpful?