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Borrowing
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 automatically start paying interest on the borrowed amount based on the current borrow interest rate.
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 that can be borrowed depends on the value of assets you have supplied as collateral and the available liquidity in the protocol. If there isn't enough liquidity or if your health factor drops below its threshold, you won't be able to borrow. You can check the liquidity and borrowing parameters for each market on the market details page of the app.
The borrowing interest rate is dynamic and determined by the current supply and demand ratio (i.e. utilisation 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.
When you supply assets on Minterest, you earn both market interest rate payments in the token supplied and MINTY rewards.
The MINTY rewards are calculated based on your share of the supply amount, while the interest rate payments depend on the market's utilisation rate and the share of interest paid by borrowers.
Similarly, borrowers on Minterest pay interest rates on their borrowed assets and receive MINTY rewards based on their share of the total borrowed amount.
Both the interest rate and MINTY rewards are dynamic and update constantly, and you can find more information about the APR and rate changes of each asset on the market details page.
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.
Last modified 1mo ago