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  • Borrowing Tokens
  • Dynamic Interest Rates
  • Maintaining a Healthy Collateral Ratio
  1. MORE Markets
  2. Markets Framework

Borrow

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Last updated 16 days ago

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Borrowing Tokens

Within MORE Markets, users can tap into liquidity by leveraging deposited tokens as collateral, maintaining exposure to one asset without selling it off, while borrowing another to invest for additional yield. This approach introduces liquidation risk. Should the market value of the collateral dip under the liquidation threshold, the protocol triggers a liquidation event to safeguard the value of suppliers' deposits.

Dynamic Interest Rates

Interest rates for borrowers are continuously adjusted based on real-time supply and demand. The utilization rate measures the portion of the total supplied assets currently being borrowed. When utilization climbs, interest rates follow suit to mirror heightened demand. Each set of assets—or reserve—features distinct parameters, promoting a balanced ecosystem for both borrowers and those supplying liquidity.

Maintaining a Healthy Collateral Ratio

Borrowers should keep track of their collateral-to-debt ratio to avoid falling below the protocol’s liquidation boundaries. As tokens fluctuate in price and accrued interest accumulates, positions that once appeared safe may inch closer to liquidation. By proactively managing the health factor by adding more collateral or repaying a portion of borrowed funds, users can ensure they remain securely overcollateralized, even in volatile market conditions.