🔃Borrow & Repay

What's the Borrow Function?

After you supply your assets, they will start generating interest and also make you eligible to borrow new assets, taking on the role of collateral. The amount of assets you can borrow depends on the Loan-To-Value (LTV) value of each asset. This parameter indicates the maximum amount of tokens you can borrow relative to the value of your collateral. For example, if the HBARtoken has an LTV of 80% and HBAR you supplied are worth $10,000 at the time you request the loan, you will be able to obtain up to $8,000 in loans. Check this section to discover how and why borrow assets.

What's the Repay Function?

The repay function is designed for borrowers to return the borrowed assets to the protocol. This function allows them to pay back the principal amount along with any accrued interest. Repaying the loan helps maintain a healthy financial position within the protocol and enables the borrower to unlock their collateral, making it available for other purposes or allowing them to withdraw it entirely if desired.