Lending FAQs (2020/11 Updated)

Lending
Launches on Binance Smart Chain & Guide for connecting to BSC:: https://bit.ly/3kicQH2

Q: How to switch between Ethereum and Binance Smart Chain Lending page?
Change the supported mainnet of your wallet and access https://app.cream.finance/.

Q: How to supply?

  1. Find supply assets listed below the Supply Balance on Lending page.
  2. Click the asset you want to supply.
  3. Click Enable button.
  4. Type in the amount or use MAX button.
  5. Click Supply button.

Q: What is crToken?
It’s the proof of your supplied asset on C.R.E.A.M. lending and need to hold it for withdrawing supplied assets. (ex: Supply CREAM, get crCREAM as IOU token)

Q: How to borrow?

  1. Set your supplied asset as collateral first(Turn on the collateral switch of your supplied asset)
  2. Click the asset you want to borrow(Find borrow assets listed below Borrow Balance bar)
  3. Type in amount or use MAX button
  4. Click Borrow button.

Q: How to withdraw?

  1. Click the asset you’ve supplied.
    2.Type in amount or use MAX button.
  2. Click Withdraw button.

Q: How to repay my debt?

  1. Click the asset you’ve borrowed.
  2. Type in the amount you want to repay or use MAX button.
  3. Click Repay button.

Q: What’s the difference between the Supply APY and Distribution APY on supply side?
Supply APY is the current interest APY of the asset when you supply, the interest accumulates in the units of the asset. Distribution APY represents the additional reward APY in $Cream.

Q: What’s the difference between the Borrow APY and Distribution APY on borrow side?
Borrow APY shows the interest APY that you have to pay when you’re borrowing, the interest accumulates in the units of the asset. Distribution APY represents the additional reward APY in $Cream.
Reminder: As the asset approaches at high utilization(80%+), borrowers will pay higher interest rates. Please check docs.cream.finance for details of interest rate model.

Q: What’s the net APY mean?
That is the sum of your supply APY and borrow APY. It can also be used to check the APY status of your current supplying and borrowing.

Q: When the interest of supply/borrow accumulate?
Per Block(~15secs)

Q: Where can I check my supply interest?
Check the Supply Balance above your Lending page. That’s the amount(Value in $USD) of your supplied asset along with the interest of it.

Q: How can I know the total balance of my borrowed assets?
Borrow Balance on Lending page shows the sum value of your borrowed assets along with the borrow interest. You can check borrow position through the Limit bar below the Borrow Balance for reference as well.

Q: How can I know each borrow balance of my borrowed asset?
Click on the assets you’ve borrowed separately, then you will see your current borrowing amount for that asset below the pop-up window(Borrow Balance).

Q: Why I can’t withdraw? It’s showing me ‘insufficient liquidity’.
There’s no enough liquidity for you to withdraw your supplied asset. You need to wait someone repay their debt or newly supply. You can check the liquidity information of the asset you want to withdraw on “Borrow side”.

Q: Why I can’t repay my debt? It’s showing me ‘insufficient balance’.
You don’t have sufficient balance in you wallet to repay your debt.

Q: 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 Used information there, which showing you the current total value you can borrow.
Reminder: Borrow Limit including the value of your borrowed asset along with the borrow interest.

Q: When will liquidation occur?
When a wallet’s Borrow limit is exceeded(Borrow Limit Used over 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%.
Reference: https://bit.ly/35nKKWx