How do I borrow?

To borrow through the Yupana Protocol, you need to deposit any supported asset that can be used as collateral. Then, in the Borrow section, select the asset you want to borrow.

Set the amount that is available to you. Part of the deposit will be used as collateral for the loan. After setting, click β€œBorrow” and confirm the transaction. The funds will go to your wallet.

How much I can borrow?

The maximum amount is calculated from the amount of your deposit, the Loan-to-Value of a specific asset, and the available liquidity in the pool. Also, your health factor must be more than 1 to take new loans.

How much would I pay in interest?

The interest rate on a loan depends on a specific asset and is determined by the ratio of supply and demand for the asset. To find out your current interest rates on active loans, go to the Borrowings tab of your dashboard.

When do I need to pay back the loan?

The loan has no fixed maturity. As long as your collateral exceeds the loan amount in the correct proportion, you can use the borrowed funds as you see fit. But rising percentages will change that ratio, lowering your health factor. If you ignore this fact for a long time, your deposited asset may be liquidated when the liquidation limit will be reached.

What asset do I need to repay?

You repay your loan in the same asset you borrowed. For example, if you borrowed tzUSD, you must return tzUSD + the accrued interest.

What is the health factor?

The health factor shows the safety of your borrowed assets in relation to the value of your deposit. The higher this value, the safer your credit position. When your health factor goes below 1, your assets are liquidated.

The health factor is calculated based on the liquidation threshold of your collateral against the value of your borrowed funds.

Hf=βˆ‘CollateraliXTZΓ—LiqidationTreshholdiTotalBorrowsXTZH_f = \dfrac{\sum Collateral_i^{XTZ} \times LiqidationTreshhold_i }{TotalBorrows^{XTZ}}

When Hf<1H_f < 1the position may be liquidated to maintain solvency.

How do I avoid liquidation?

To avoid liquidating your collateral, you need to keep an eye on your health factor. To increase it, you can partially repay the loan or replenish more assets as your collateral.

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