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Borrow
Borrowing assets on Moonwell
Moonwell allows users to leverage or "collateralize" their supplied assets in order to borrow other assets. Once your supply has been deposited and you have enabled collateral, you can obtain an over collateralized loan from the protocol. The maximum borrowable amount will be based on the value of the supplied collateral, as well as the parameters established in the protocol parameters.
Before starting, please ensure “collateral” is enabled in the “Supply” tab. Click here for instructions. For the purpose of this demonstration, the GLMR asset will be used.
The health of the loan is determined by the Health Factor Value, but is otherwise a perpetual open loan. Please be aware that there is an interest based fee which can impact your Health Factor Value and put your loan at risk of liquidation.
Please regularly monitor your loan health, and ensure your score is always safe.
There is no notification system at present to notify you if your loan is at risk.
If you don't repay your loan, and your Health Factor Value drops too low, a liquidation event will be triggered to repay the loan, and you will lose the value of your loan. So it's important to only borrow what you can afford to repay, and continuously monitor your Health Factor Value.
The borrow tab will display an estimated health factor value adjustment based on the amount borrowed.
Select, or input, the amount you wish to borrow.
Approve the transaction in Metamask. A transaction log will also appear which will show details about previous transactions.
Your dashboard will now have additional information displaying health factor, loan composition, and more.
In order to keep the Health Factor Value at a safe value, it is recommended to pay back the loan.
Open loans can be viewed in the “Borrow” tab. Repaying the loan is also available in the “Borrow” tab. Clicking “Repay” will open up a modal window with further instructions.
Select the amount to repay. The “Repay” modal will show an indicator of current health, as well as an estimate of the health factor value based on the amount repaid.
Approve the transaction in Metamask. A transaction log will also appear which will show details about previous transactions.
Last modified 9mo ago