To borrow an asset, you need to go to the “Borrow” section and choose an asset that you would like to borrow. You will also see the Borrow APY you will pay for borrowing funds depending on the asset you borrow:
Once you choose the currency and enter the amount, you can click on Continue button to proceed with confirming the transaction on your Wallet:
Before proceeding with the borrowing, make sure that you have enough collateral and your health factor can sustain the borrowing, to avoid the liquidation event which would wipe out any funds that are used as collateral against your borrowings.
How to repay a loan?
To repay a loan, go to My Dashboard section, click on Repay option:
The loan can be repaid either partially or in full by clicking on the Max icon:
Both actions will also lead towards the improvement of the health factor.
Once the transaction is confirmed on the blockchain, the loan will be successfully/partially covered, depending on the option chosen prior.
How to check your Health Factor?
The health factor represents the safety of your loans. This is measured and derived from the proportion of funds acting as collateral versus funds borrowed.
You can check your Health Factor on My Dashboard:
The higher your Health factor, the better. To avoid the liquidation event which would wipe out any funds that are used as collateral against your borrowings, make sure that the health factor is always remains above 1.