In this section we will cover the basic aspects of the borrowing process
In order to create a borrow package, first you have to select the assets that will be used as collateral for the loan.
In the borrow section you will see all the assets that you currently have in your Metamask wallet.
A borrow package can be created with either individual or multiple assets that will be used as collateral. Bundling is recommended in order to increase the total value of the package and offer a more attractive mix of assets that will increase the chance of receiving a loan faster on the marketplace.
- 1.Select the assets that you want to use as collateral - from the borrow section and select "create package" from the sidebar.
- 2.Enter the bundle value - valuation is one of the most important factors during the entire lending process. This number should be carefully assessed because by overvaluing the package, you may wait longer until someone provides you with a loan or you may not receive a loan at all.
- 3.Select loan duration - the number of installments will be automatically calculated based on this number.
- 4.Select LTV (loan-to-value) ratio - if the bundle value has been entered, the LTV ratio represents the actual borrow amount that you can get for that specific package. The maximum allowed is currently 60%.
- 1.Select "next" and go to loan summary - here you can make an assessment of the entire package. You can see additional information on the terms sheet and again the selected assets for the package.
- 1.Proceed with the loan - and pay for gas. The collateral assets will be transferred and locked in our escrow smart contract. Congrats, a new package has been created!
Now that you package has been created, it will be visible on the lend section with all the other packages created by our users.
On this section, lenders (liquidity providers) will provide loans to borrowers. In the next section we will cover the basic aspects of the lending process.
You can get you collateral back at any time if you haven't received a loan yet or if you have received a loan you can get the collateral back after the full repayment of the loan amount.