Borrow
DeFi
Obtain assets by posting collateral or using credit.
Borrowing lets you raise liquidity without selling core assets. Protocols enforce safety with collateral ratios, interest rates that adjust to demand, and clear liquidation rules. Keep a buffer so price swings do not force a sale of your collateral.
Frequently asked questions
How much can I borrow?
It depends on the collateral factor. Over collateralized loans allow less than your deposit value to protect against price swings.What triggers liquidation?
If your health factor falls below 1 due to price drops or interest growth, the protocol can repay your debt by selling collateral.How do I reduce risk?
Avoid max borrowing, monitor prices and interest, and set alerts. Diversify collateral and leave room for volatility.