LNDfi
  • Introduction to LNDfi
  • Core Advantages & Features
  • Money Markets
  • Fees & Yield
  • Interest Rate Mechanism
  • Oracles
  • Protocol Features
    • Supply
    • Borrow
    • Repay
    • Withdraw
    • Isolation Mode
    • Liquidation
  • Understanding Risks in LNdfi
    • Types of Risks
  • Technical
    • Flashloan's
  • Security
    • Audit & Security Overview
  • Resources
    • Brand Kit
    • Official Links
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On this page
  • How to borrow ?
  • Borrowing Process
  • Potential Risks of Borrowing
  • Borrow Caps
  1. Protocol Features

Borrow

Borrowing on LND

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Last updated 2 months ago

By depositing supported tokens as collateral on LND fi, you gain the ability to borrow a range of assets. Borrowing terms, including the Loan-to-Value (LTV) ratio, are governed by predefined risk parameters, with interest accruing in accordance with these terms.

How to borrow ?

To enable borrowing, begin by depositing assets as collateral. The maximum borrowable amount is determined by:

  • The value of your deposited assets

  • The type of assets you have provided

  • The liquidity available in the assets you intend to borrow

Borrowing Process

To borrow assets from LND fi, follow these simple steps:

  1. Access the Dashboard: Start by navigating to the LND fi dashboard, just as you would for any other transaction.

  2. Choose the Asset: In the “Assets to Borrow” section, locate the asset you wish to borrow and click the “Borrow” button.

  3. Enter the Amount: Manually input the amount you wish to borrow, or select the 'max' option to automatically choose the highest allowable amount based on your collateral.

  1. Review Terms: Thoroughly review all related terms, including any warnings, Gas Fees, and your Health Factor.

  2. Acknowledge Risks: If prompted, check the box to acknowledge the risks associated with borrowing.

  3. Finalize Transaction: Click the "Borrow Asset" button to complete the borrowing process.

Potential Risks of Borrowing

Borrowing involves inherent risks, particularly in the event of significant market fluctuations:

  • Risk of Liquidation: If your Health Factor drops below 1, the protocol may trigger the liquidation of your collateral to settle the debt, potentially resulting in considerable losses.

Borrow Caps

Borrow caps set the maximum limit on the amount of an asset that can be borrowed. These caps help prevent excessive borrowing, both traditional and flash, of assets that may be prone to price manipulation, which could threaten the protocol's stability. A borrow cap is an optional parameter, and its value depends on the asset's on-chain liquidity and the total volume of borrowed assets within the pool.