A token holder wants to keep maximum exposure (interest, farm reward, token price appreciation) on their current asset while looking to enter another position with additional capital or buy a property in real life.
Using Moremoney, token holders can borrow against their assets instead of having to sell them. This can be particularly attractive for illiquid assets which the user wants to hold on to, while also being able to work in a liquid way with some of the value of that asset.
Borrow page Moremoney
The borrow section of the app has table with a list of all tokens that can be used as collateral, which looks something like this
At the top a user can choose a filter between single assets, LP tokens and all assets. It is also possible to search for a particular token using the search book on the top right.
Other components here include:
Collateral Asset: These are the supported tokens you can use as collateral to mint MONEY. Collateral APY: This is the Annual Percentage Yield that an asset supported as collateral is currently earning. MONEY Available: This is the maximum that can be borrowed with a particular collateral. Max LTV/cRatio: This is the maximum loan to collateral ratio allowed before a position can be liquidated. Example: AVAX with LTV of 90% means for every 1$ worth of AVAX used as collateral, a borrower can borrow a maximum of 90c, if the loan goes above due to AVAX dropping in price, the position will qualify for liquidation. Liquidation Fee: This is the discount a liquidator gets when liquidating a position that qualifies for liquidation.
To borrow MONEY, simply click on the token you wish to use as collateral. For our example we will be using AVAX
select collateral token
After clicking on the desired collateral token, you should be directed to the borrow detail window
On this page, you can deposit collateral and borrow MONEY. On the component on the left. you can enter the amount of token you intend to use as collateral and also the amount of MONEY you want to borrow. The app also calculates the value of your collateral deposit, the expected liquidation price and the cRatio of the position. In the example below, we are attempting to borrow 32.54 MONEY with a collateral worth $64.99. This position will be flagged for liquidation when AVAX drops to $40.68
Another important component is this:
Specific information on how much the collateral is earning and which strategy the collateral is assigned to is show here. More information about borrowing with a particular token are also shown here:
Open positions can be managed in the same window as used to initially open a position. Here we can:
- Add more collateral by borrowing 0 but adding more collateral
- Borrow more MONEY
- Repay debt and withdraw collateral
- Withdraw part of the collateral