Q1: How to borrow?
- Set your supplied asset as collateral first(Turn on the collateral switch of your supplied asset on lending dashboard)
- Find the asset you want to borrow. You can search it or select from the category menu.
- Click the asset you want to borrow
- Type in the amount you want to borrow.
Q2: How much can I borrow against my supplied asset?
You can check https://docs.cream.finance/ for details of each collateral factor of supported assets. Plus clicking the borrow assets and then you will see
Borrow Limit(in $USD value) and
Borrow Limit Usedinformation there, which showing you the current total value you can borrow.
Borrow Limit Usedincluding the value of your borrowed asset along with the borrow interest.
Q3: When will liquidation occur?
When a wallet’s
Borrow limitis exceeded(
Borrow Limit Usedover 100%), anyone can permissionlessly repay loans at a discount in return for the underlying collateral assets. (=Liquidation)
This discount incentive for the liquidators ensures that debt remains fully collateralized, reducing systemic risk.
According to the Comptroller contract, the liquidation incentive is 1.08 and the close factor is 0.5. This means that each liquidation calls can liquidate half of the collateral and the bonus liquidator can get is 8%.
Q1: How to repay my debt?
- Click the asset you’ve borrowed.
- Type in the amount you want to repay or click on ‘Repay Full’.
Q2: Why can’t I repay my debt? It’s showing me ‘
You don’t have sufficient balance in your wallet to repay your debt.