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Borrowing
This guide walks you through how to borrow in MOAR.

Why Borrow?

Borrowing allows you to keep the upside of your asset while still being able to extract liquidity (aka capital) for other purposes. Furthermore, you avoid expensive tax liabilities for selling.
Borrowers usually leverage their holdings for expenses or for new capital opportunities such as yield farming.

How to Borrow

Make sure you have assets deposited and marked for collateral. Read the Depositing section for more information.
You can borrow from two areas:
  1. 1.
    From the Markets, click into the asset you want to Borrow. This opens up the Asset Profile page. From here, click on the Borrow button.
  2. 2.
    From your Dashboard, if you already have the assets borrowed, under My Borrows you can click on the Borrow button for the asset. You can also click on Borrow Assets from the My Borrows section to borrow assets you have not yet borrowed.

Borrow Minimums / Maximums

There is no minimum borrow amount, though you should consider the economics of transaction cost for small borrows.
The maximum amount you can borrow depends on the value of your deposited assets you marked for collateral and your account's available liquidity.
Your account's liquidity is the sum of your deposited collateral value (positive liquidity) versus the borrowed asset value (negative liquidity). Your can borrow until your net account liquidity reaches zero.
Due to the effects of liquidation and volatile markets, we do not recommend utilizing 100% of your borrow limit. We recommend a healthy liquidity margin of 30%.

Boosting Borrows

MOAR's Boosted Borrow allows you to extract more liquidity from your collateral. Read here for more information on how Boosted Borrows work.
Boosters, which enable Boosted Borrows, can be loaded into MOAR through two ways:
  1. 1.
    Boosted as part of the MOAR Borrow process.
  2. 2.
    Purchased independently by the borrower from UNION Protocol's C-OP site and deposited.

Boosting when Borrowing

When you borrowing, provided you have supported Booster collateral, you will be offered an option to Boost your Borrow.
  1. 1.
    Click to Borrow an asset as usual.
  2. 2.
    Enter your borrow amount and click Continue as usual.
  3. 3.
    Click on "I'm Interested" when prompted to MOAR Boost your Borrow.
  4. 4.
    In the MOAR Borrow Boost panel, you will see the amount of boosting available given your asset utilization and the asset's MPC.
  5. 5.
    Enter the amount you want to boost either in the collateral until or in USDC. Read the section on Boosted Borrows for how this amount is calculated.
  6. 6.
    Enter the time you want the Boosted Borrow to be effective. At the end of this time, or the expiration date, your Boosted Borrow will return to normal Borrow factors and your liquidity account will adjust accordingly.
  7. 7.
    Click on Get Quote to get a quote from our Booster partner, UNION. There is no commitment to purchase at this time.
  8. 8.
    Click on Boosted Borrow if you want to proceed or click on Skip Booster if you want to borrow without boosting.
  9. 9.
    Once Boosted Borrow is complete, you will see your Booster under Dashboard-> My Deposits-> Boosters along with the Booster's utilization.

Depositing Boosters

  1. 1.
    Click to My Deposits-> Boosters.
  2. 2.
    Click on Add Boosters. The modal will show any Booster in your wallet that you purchased independently which are valid for MOAR use.
  3. 3.
    Click on Deposit. You will be show the utilization of the Booster based on your account liquidity and the asset's MPC.

How much do I Pay?

The interest rate you pay for borrowing assets depends on the borrowing rate which is derived from assets' utilization rate. The higher the utilization of an asset, the higher the interest you pay. Each asset's Asset Profile shows the current utilization, deposit, and borrow rate for an asset. You can also see how rates change as utilization increases or decreases.
You can find your current borrowing rate at any time in the My Borrows section of your dashboard. To emphasize, your borrowing rate changes continuously; that is, it's a variable interest rate.
Interest accrues in the same asset as you borrowed. For example, if you borrowed USDC, then your interest accrues in USDC.
You repay your loan in the same asset you borrowed. For example, if you borrow 1 ETH you will pay back 1 ETH + interest accrued.

Capacity Used

The Capacity Used in your dashboard shows the percent of borrowing power you are currently using. At 100% you are using all available borrowing power from your assets. If your Capacity Used exceeds 100%, your account will be at risk of liquidation. Due to the effects of liquidation and volatile markets, we do not recommend utilizing 100% of your borrow limit. We recommend a healthy liquidity margin of 30%.

Paying Back Borrows

You can Pay Back from the same places you Borrowed:
  1. 1.
    From the Markets, click into the asset you want to Pay Back. This opens up the Asset Profile page. From here, click on the Pay button.
  2. 2.
    From your Dashboard, under My Borrows you can click on the Pay button for the asset.
There is no fixed time period to pay back the loan. However, as time passes, the accrued interest will grow and your account may enter liquidation state if you do not have sufficient deposited collateral.

Avoiding Liquidation

Liquidations are a costly but necessary fail safe for keeping depositor assets safe. You can either repay your loan or deposit more assets in order to avoid liquidation and raise your account liquidity. Out of these two options, repaying the loan increases liquidity more.
Last modified 5mo ago