Note: If you supplied an asset in the "Main Pool", you can only borrow against this with assets within this pool. Alternatively, if you supplied an asset in the "LCRO Pool", you can only borrow against this with assets within this pool. Read more about isolated pools here
Individual asset markets page
You will need to confirm the "Use as collateral" transaction in your wallet.
Head to the Markets Page and click on an asset
You will be taken to the individual asset markets page
4) Click on the “Borrow” button and indicate the amount you intend to borrow (Example below is for TONIC)
5) Confirm your transaction in your wallet
6) A pop-up will appear to indicate a successful transaction
The dashboard provides key information such as the supply balance, borrow balance, Net APY, Current Loan-To-Value (LTV), available borrowing power, and the list of supplied and borrowed assets
A: The best way to determine the "health" of your loan is to look at the lava bar (shown in the screenshot below). 90% indicates the maximum threshold that you can borrow.
As a rule of thumb, we recommend that you maintain your lava bar below 50%. This loan-to-value ratio could help better protect your position from liquidation during volatile market periods.
A: We have disabled the supplying and borrowing of the same asset on this platform. This means that if you have supplied asset A, you will not be able to use this asset as collateral to borrow more of asset A.
This is done as we are aware that whales often do leveraged stablecoin farming, to receive more incentives. Leveraged stablecoin farming is the act of supplying and borrowing the same asset, typically stablecoins, in a continuous loop. This restriction is thus put in place to ensure that our incentives are spread across a larger Cronos user base, benefiting all users who are using the Tectonic platform.
A: Net Borrow APY = Fees paid by user for borrowing asset - Distribution APY
- If Net Borrow APY is negative, Distribution APY > Fees paid for borrowing asset. This essentially means the user is being paid to borrow the asset.
Distribution APY = TONIC rewards paid to user
- if Distribution APY = 0%; there are no TONIC rewards paid out for that market