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How to Borrow

Learn how to borrow assets with Moonwell

About

You can borrow assets using your supplied assets as collateral.

Prerequisites

  1. 1.
    Deposit one or more assets to the protocol. This will be used as collateral to take out an over-collateralized loan.
    • All supported assets are listed in Markets.
  2. 2.
    Enable asset(s) for use as collateral.
    • The collateral toggle feature serves the purpose of allowing users to specify whether they want to use an asset as collateral for borrowing.
    • To designate an asset as collateral, the user must select "YES" on the collateral toggle. This indicates their intention to use the asset as collateral for borrowing purposes.
    • For example, if a user wants to borrow against their supplied GLMR (asset), they need to choose "YES" for their supplied GLMR on the collateral toggle. This indicates that the supplied GLMR will serve as collateral for their borrowing.
    • If a user does not intend to borrow against an asset, they can keep the collateral toggle set to "NO". This indicates that the asset will not be used as collateral for borrowing.

How to Borrow

Step 1: Enable Asset as Collateral

  1. 1.
    Navigate to "Lend".
  1. 2.
    While the "Supply" modal is displayed, choose the asset you want to enable collateral on from the dropdown menu.
To reveal all assets, simply use the down arrow inside the asset button.
  1. 3.
    Locate the "Enabled as Collateral" toggle and select "Yes".
  1. 4.
    When the "Enable Market as Collateral" popup appears, simply click on the "Confirm" button and confirm the transaction in your wallet.

Step 2: Select Asset to Borrow

Option 1

  • With the "Borrow" modal selected, choose the asset you want to borrow from the dropdown menu.
To reveal all assets, simply use the down arrow inside the asset button.

Option 2

  • Click "Borrow" on the asset you want to borrow. In this example, GLMR (Moonbeam) has been chosen.
Clicking "Borrow" will direct you to the "Borrow" page of the desired asset.

Step 3: Completing Borrow Transaction

  • With the "Borrow" modal selected, enter the amount you would like to borrow.
  • Click "Borrow"
Click "Borrow" after selecting the amount you want to borrow.
  • Review the transaction details and click "Confirm Borrow".
  • To complete the transaction, confirm it in your wallet and wait for execution. Once successful, you will have successfully borrowed from the desired market. The borrowed assets will be sent directly to your wallet.