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Borrowing
Borrowing with Frontier
You can borrow DOLA and other assets against your loaned collateral. Currently, you can borrow against all assets at a maximum collateralization ratio of 170%, except for INV which soon will be re-enabled for borrowing. This means you can borrow up to 85% of your loaned USD asset balance.
New assets added to Frontier may start out at a different collateralization ratios. These ratios are subject to change (as with all assets, via a DAO governance vote) as Inverse Finance receives feedback from users.
To check the collateral factor of each asset, select it on the “Supply” table in Frontier and look under market stats.
Please be aware that your collateralization ratio will change when you borrow assets as the supplied assets value and the borrowed assets value fluctuate - BOTH CAN BE HIGHLY VOLATILE. Ensure that you understand the concept of liquidation and related risks before you borrow.
Before you can borrow, you must first supply/deposit assets that you would like to use as collateral. Instructions on how to deposit/supply are here
Enable Collateral
Once you have deposited asset(s) to Frontier, you need to enable them to be used as collateral for the purposes of borrowing against. In the 'Supply' table, click the collateral button for the asset(s) that you would like to use as collateral, this will bring up a popup with details regarding your new borrow limit and will look similar to this:
Click the 'Enable [asset] as collateral' button. This will bring up a transaction for you to sign using your wallet (please note this will require you to pay a gas/transaction fee). Once the transaction has been confirmed on the Ethereum network, it should look like this:
Borrowing
Now that you have deposited assets and enabled those assets to be used as collateral to borrow against, it is now time to borrow from Frontier.
In the diagram below, 1 ETH ($1430) of deposited/supplied collateral results in a maximum DOLA borrow amount (maximum credit line) of $1000 or 1000 DOLA. Borrowing a significant amount less (500) results in a much safer risk level.
Once you have chosen the amount that you would like to borrow, click the Borrow button and submit the transaction using your wallet.
You can use the Frontier Banking page to keep track of your DOLA borrow balance (which you will need to repay at some point) and your Borrow Balance / Limit ratio to ensure that you do not get liquidated.
You need to pay attention to the value of your collateral, as if it drops, your borrow limit percentage will increase to a less safe level. If it reaches 100%, then your collateral will be liquidated.
The interest accrued from your borrowings is added to your borrow balance; therefore, the amount/quantity/balance of borrowed assets that you need to repay will grow over time.
Last modified 1mo ago
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