Borrow
Overview
The Pike Market protocol allows users to borrow supported crypto assets by using other assets as collateral. Borrowers pay interest on their loans, which is distributed to lenders as earnings. The amount a user can borrow is determined by the value of their supplied collateral and the collateral factor assigned to the asset.
Example Calculation
If a user supplies 10 WETH as collateral valued at $35,000 and the collateral factor for WETH is 80%, the user can borrow up to:
$35,000 × 0.80 = $28000 worth of the targeted asset.
Prerequisites
Before borrowing an asset, ensure that:
You are connected to the protocol dashboard.
You have a supplied asset as collateral on the protocol.
Step-by-Step Borrowing Guide
Select an Asset to Borrow
Navigate to the ’Assets to borrow’ section of the Lending Dashboard.
Click the Borrow button for the asset you want to borrow.
Set Borrow Amount and Review Details
Enter the amount you wish to borrow (up to the maximum limit based on your collateral).
Manual Input: Enter a custom amount.
Predefined Options: Select from preset percentages (25%, 50%, 75%, 100%).
Review the Borrow APY and its impact on your health factor.
Note: The closer your borrow amount is to the limit, the lower your health factor, increasing the risk of liquidation.
Confirm the Borrow Transaction
Approve the transaction in your connected crypto wallet.
Wait for the transaction confirmation on the blockchain.
Monitor Borrowed Assets
Once confirmed, your borrowed amount will appear on the dashboard in ‘You Borrowed’ section.
Track your portfolio and health factor regularly.
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