Borrow and repay

Borrowing Assets

Users can borrow assets on ElaraLend by depositing collateral, which is automatically enabled for borrowing. The maximum borrowable amount is displayed as the "Available Borrow" under the "Dashboard" page. It's important to monitor the Borrow Utilization closely to avoid liquidation risks. ElaraLend's two-layer structure consists of:

1. Main pool: Users can borrow any supported asset against their collateral.

2. Satellite pools: Users can borrow ETH against their deposited LST/LRTs.

Currently, borrowing is limited to the pool where the collateral is deposited. Cross-pool borrowing will be enabled in an upcoming update, allowing for more flexible borrowing options across pools.

Repaying Loans

Repayments are made through the "Repay" option under "My Loan" on the "Portfolio" page. Timely repayments help maintain a healthy account status and prevent potential liquidation. When repaying loans on ElaraLend:

1. Users can repay partially or fully at any time.

2. Repayments must be made in the same pool where the loan was taken.

3. Users should be aware of their current health factor and how repayments will affect it.

It's crucial to maintain a healthy borrow position to avoid liquidation. ElaraLend provides real-time information on your account's health factor and liquidation threshold to help you manage your borrowings effectively.