Borrowing
This guide shows how to open a CDP, deposit collateral, and borrow USDB.
Step-by-step
Select asset and open the Borrow panel Choose the collateral asset on Market page or go to the Borrow page and pick an asset.
Enter amounts
Input Collateral to deposit.
Input USDB to borrow. The panel previews CR, MCR, Liquidation/Market Price, and the Fixed Interest Rate.
Review health Confirm the CR bar is in a healthy zone and the CR >= MCR(Liquidation).
Submit Confirm the single transaction that both deposits collateral and borrows USDB.
View your position on Dashboard
Costs and interest
No one-time borrow fee.
Fixed borrow rate per asset. See Markets for current rates.
Interest accrues in real time and is added to your debt continuously.
Risk and health checks
Collateral Ratio (CR) CR = Collateral Value / Debt
= (Oracle Price * Collateral Amount) / (Principal + Accrued Interest)
Minimum Collateral Ratio (MCR) Each asset has a fixed MCR. Your position must keep CR >= MCR.
Liquidation price For given Debt and Collateral Amount: Liquidation Price = (MCR * Debt) / Collateral Amount
Neutral reminder: Always watch your CR and Liquidation Price. If CR falls below MCR (CR < MCR), the position becomes liquidatable.
Example (SUI)
Assumptions:
Collateral: 1,000 SUI
Oracle price: $5.00 per SUI -> Collateral Value = $5,000
MCR (SUI) = 110% (1.10)
Borrow 3,000 USDB
Entry CR = $5,000 / $3,000 = 1.6667 (166.67%)
Liquidation Price = (1.10 * 3,000) / 1,000(SUI) = $3.30 per SUI
Borrow 4,000 USDB
Entry CR = 5,000 / 4,000 = 1.25 (125%)
Liquidation Price = (1.10 * 4,000) / 1,000 = $4.40 per SUI
Numbers are illustrative. Real-time accrual will slowly increase debt after opening.
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