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Borrowing

Borrowing lets you use assets you don't want to sell as backing for assets you need now.

Prerequisites​

You need supplied collateral with Use as collateral enabled, and the asset you want must have borrowing enabled and available liquidity. Your borrowing power is your collateral's value times each asset's max LTV, summed across everything you've enabled.

Taking a loan​

Press Borrow on a reserve. The drawer shows:

  • the current variable borrow APY and what it becomes after your borrow,
  • the estimated network fee for the exact transaction you're about to sign,
  • a health preview: your health factor and LTV before and after.

There is no repayment schedule. Interest accrues continuously onto your debt balance until you repay.

Repaying​

Repay from the dashboard or the reserve page. Max repays your full debt, including the interest that accrues between signing and confirmation. Partial repayments work too and immediately improve your health factor.

Repaying an ERC-20 debt needs a one-time approval, just like supplying. The approval for a full repayment includes a small buffer so accruing interest can't strand a few wei of debt.

What to watch​

One number: your health factor. At 1.00 your collateral can be liquidated at a penalty. Prices move constantly, so keep a comfortable buffer; many users treat 1.5 as a floor. The dashboard's health bar shows exactly where you stand between your max borrow and the liquidation threshold.