Borrowing on LayerBank

How LayerBank Borrowing Works

Borrowing on LayerBank starts with a supplied asset that is eligible to act as collateral. The protocol calculates how much can be borrowed from the collateral value and the market-specific loan-to-value parameters.

1. Supply an eligible asset.
2. Enable collateral where the market supports it.
3. Select a borrowable asset with available liquidity.
4. Review Borrow APR, Max LTV and position safety before confirming.
5. Repay principal plus accrued interest to reduce or close debt.

Borrow APR and Available Liquidity

Borrow APR is variable. It changes as pool utilization changes, so the cost of a debt position can rise or fall while the position remains open. A market can also have limited available liquidity even when borrowing is enabled.

Use the interest-rate guide to understand utilization and the APR guide for rate components.

Collateral, Max LTV and Risk

Max LTV defines the maximum borrowing capacity against collateral. Borrowing close to the limit leaves less room for price movements or accrued interest. A safer position maintains a buffer between current debt and the liquidation threshold.

Repaying and Managing Debt

Debt can be reduced by repaying the borrowed asset. Repayment lowers utilization of the individual position and can improve its Health Factor. Collateral supporting active debt should not be treated as fully withdrawable until the position remains within required risk limits after the withdrawal.

Open Manage to review supplied assets, debt and collateral positions.