How to: Borrow an Asset #
Borrow Limit #
Your Borrow Limit is the maximum value of assets you can owe the protocol; at the top of the Dashboard, a meter is displayed, tracking what portion of your Borrow Limit you’ve used.
If this meter reaches ≥100%, your account will be partially liquidated. This can occur when collateral declines in value, or borrowed assets increase in value.
When a liquidation occurs, a liquidator may repay some or all of an outstanding borrow on behalf of a borrower and in return receive a discounted amount of collateral held by the borrower; this discount is defined as the liquidation incentive.
Borrow APY #
Borrow APY = 100 * CompSpeed * eRSDLPrice * BlocksPerYear / TotalBorrows / UnderlyingPrice
- CompSpeed - amount of eRSDL that is distributed, per block, to suppliers and borrowers in each market.
- ERSDLPrice - current listed price of eRSDL token.
- BlocksPerYear - amount of mined blocks in Ethereum network -
2,102,400 (15 sec per block)
- UnderlyingPrice - price of borrowed asset
- Total Borrows - amount of underlying currently loaned out by the market, and the amount upon which interest is accumulated to suppliers of the market