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Rules For Variable/Stable Borrow
Rules for Borrow Variable Rate
  1. 1.
    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. 2.
    If the borrow amount > the available liquidity of the platform ⇒ User cannot borrow at all
  3. 3.
    If the health factor ≤ 1 ⇒ User cannot borrow at all and might be liquidated to maintain solvency
  4. 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. 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. 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. 3.
    If user’s borrow amount (DAI) > 25% DAI Available Liquidity ⇒ He cannot borrow DAI token with the stable rate.
  4. 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. 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.
Last modified 4mo ago
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