Borrowing

This guide shows how to open a CDP, deposit collateral, and borrow USDB.

Step-by-step

  1. Select asset and open the Borrow panel Choose the collateral asset on Market page or go to the Borrow page and pick an asset.

  2. Enter amounts

    • Input Collateral to deposit.

    • Input USDB to borrow. The panel previews CR, MCR, Liquidation/Market Price, and the Fixed Interest Rate.

  3. Review health Confirm the CR bar is in a healthy zone and the CR >= MCR(Liquidation).

  4. Submit Confirm the single transaction that both deposits collateral and borrows USDB.

  5. 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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