If the borrow amount ≤ the available liquidity of the platform ⇒ User can borrow with variable rate or stable rate (depending on whether he is eligible for stable)
2.
If the borrow amount > the available liquidity of the platform ⇒ User cannot borrow at all
3.
If the health factor ≤ 1 ⇒ User cannot borrow at all and might be liquidated to maintain solvency
4.
If the health factor > 1 ⇒ User can borrow with variable rate or stable rate (depending on whether he is eligible for stable)
Rules for Borrow Stable Rate
1.
If the user deposits only 1 token and uses that token as collateral ⇒ User cannot borrow that token with the stable rate. Example: I only deposit DAI ($100), I cannot borrow DAI with stable rate.
2.
If the user deposits only 1 token (DAI) and uses that token as collateral ⇒ User can borrow other tokens with the stable rate. Example: I only deposit DAI ($100), I can borrow BNB with stable rate.
3.
If user’s borrow amount (DAI) > 25% DAI Available Liquidity ⇒ He cannot borrow DAI token with the stable rate.
4.
If the user deposits multiple tokens (DAI, BNB), his borrow amount (DAI) ≤ 25% DAI Available Liquidity AND his borrow amount (DAI) ≤ his collateral (DAI) ⇒ He cannot borrow DAI token with the stable rate.
5.
If the user deposits multiple tokens (DAI, BNB), his borrow amount (DAI) ≤ 25% DAI Available Liquidity AND his borrow amount (DAI) > his collateral (DAI) ⇒ He can borrow DAI token with the stable rate.