Minterest FAQ


How can I borrow?

To borrow on Minterest, you need to first supply an asset to use as collateral. After supplying an asset, head to either the "Markets" or "Dashboard" page and select the "Borrow" button for the asset you want to borrow. Choose the amount you'd like to borrow within your borrowing limits, and confirm the transaction. Once confirmed, your borrow will be registered, and you'll start paying interest on the borrowed amount, based on the current borrow interest rate.

Is there a minimum or maximum amount to borrow?

There is no minimum amount to borrow, but it's important to note that transaction costs for very small borrowings may be higher than the actual amount borrowed. The maximum amount you can borrow depends on the value of assets you have supplied and the available liquidity in the protocol. If there isn't enough liquidity or if your health factor doesn't meet the requirements, you won't be able to borrow. You can check the liquidity and borrowing parameters for each market in the market details page of the app.

What is the interest rate for borrowing?

The borrowing interest rate on Minterest is determined by the supply and demand ratio of the asset you wish to borrow. You can check the current borrowing rate for the asset in the assets table of your dashboard at any time.

What is the difference between Interest rate and MNT rewards for borrowing?

Borrowers on Minterest are subject to paying interest rates on their borrowed assets, but they also receive MNT rewards as a form of subsidy. These rewards are calculated based on the borrower's share of the total borrowed amount and are continuous. On the other hand, the interest rate payment depends on the average borrow rate and the utilisation rate of the reserve, which can fluctuate over time. To find out more about the APR and rate changes of each asset, you can refer to the market details page.

How can I avoid liquidation when borrowing?

Maintaining a healthy health factor is important to avoid liquidation when borrowing on Minterest. If your health factor drops below the threshold, the system may liquidate some of your collateral to repay the loan. To prevent this, you can either repay a portion of the loan or deposit more collateral to increase your health factor. Repaying the loan is usually more effective in increasing the health factor. Minterest provides various features to help you manage your borrowing position and reduce the risk of liquidation.
If you still have any questions or issues, don't hesitate to contact the Minterest team through the website chat or the Discord and Telegram channels. We're always here to assist you!