Borrowers

To begin, we should clarify the borrowing process for those who have never been in the role of the borrower before. In order to be able to borrow, you need to provide a certain amount of assets as collateral first. The collateral factor of your collateral will give you borrowing power, which you can use to borrow assets in the pool.

Edge has also implemented borrowing factors to better account for risks associated with borrowed assets. Therefore, the actual amount of a certain asset you can borrow, denoted as borrow limit, will be

Borrow Limit = [Collateral Value * CollateralFactor] * Borrowing Factor

BorrowLimit = Borrowing Power * Borrowing Factor

Note that the formula above is calculated when users are going to borrow an asset (one at a time). However, the overall health of the user's position is calculated via risk ratio, accounting all collateral and borrowed assets that position currently has.

Posting collateral

After you have supplied an asset (see how), turning on the toggle will use that asset as collateral. The percentage shown below the toggle represents a collateral factor of that asset.
You will be prompted to review changes that will happen to your borrowing power and LTV. Once you're satisfied with your position, click 'Confirm.'
Please note that your collateral is subjected to the risk of being seized in case of liquidation.

Borrowing an asset

First, make sure you are on the 'Borrow' side of the market. The borrowing limit of each asset available in the market will be automatically calculated by factoring its borrowing factor into your borrowing power.
Once you find the asset you want to borrow, click 'Borrow.'
Next, you will have to enter the amount you want to borrow. You can enter the amount directly into the text field or drag the slider to your targeted risk ratio. Please beware that the higher your LTV, the risker your position will be liquidated.

Repaying debt

Find the asset you have borrowed and click 'Repay.'
Once you see the pop-up, you can enter the amount you want to repay. Arrows indicate changes in your position––from the current position to what it will be––if you proceed with the amount you entered.
Click 'Repay' when you are ready to submit the transaction. Then, you will be asked to confirm the transaction on your wallet.
Once a borrow position has been repaid, the account’s collateral can be redeemed.

Removing collateral

Turn the toggle off to stop using an asset as collateral.
Turning the toggle off, you will be prompted to review changes that will happen to your borrowing limit and the limit left to borrow. Once you're satisfied with your position, click 'Confirm'.
You can only remove the asset from being collateral when removing that assets from being collateral still keeps the position healthy within the safe zone shown in risk ratio.

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Last updated 2 years ago

Posting collateral

After you have supplied an asset (see how), turning on the toggle will use that asset as collateral. The percentage shown below the toggle represents a collateral factor of that asset.

You will be prompted to review changes that will happen to your borrowing power and LTV. Once you're satisfied with your position, click 'Confirm.'

Please note that your collateral is subjected to the risk of being seized in case of liquidation.

Borrowing an asset

First, make sure you are on the 'Borrow' side of the market. The borrowing limit of each asset available in the market will be automatically calculated by factoring its borrowing factor into your borrowing power.

Once you find the asset you want to borrow, click 'Borrow.'

Next, you will have to enter the amount you want to borrow. You can enter the amount directly into the text field or drag the slider to your targeted risk ratio. Please beware that the higher your LTV, the risker your position will be liquidated.

Repaying debt

Find the asset you have borrowed and click 'Repay.'

Once you see the pop-up, you can enter the amount you want to repay. Arrows indicate changes in your position––from the current position to what it will be––if you proceed with the amount you entered.

Click 'Repay' when you are ready to submit the transaction. Then, you will be asked to confirm the transaction on your wallet.

Once a borrow position has been repaid, the account’s collateral can be redeemed.

Removing collateral

Turn the toggle off to stop using an asset as collateral.

Turning the toggle off, you will be prompted to review changes that will happen to your borrowing limit and the limit left to borrow. Once you're satisfied with your position, click 'Confirm'.

You can only remove the asset from being collateral when removing that assets from being collateral still keeps the position healthy within the safe zone shown in risk ratio.