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Borrow

Gain exposure to market movements without selling

Overview

Borrowing puts your portfolio to work and gains exposure to market movements without selling your holdings.
The Borrow tab lets you access immediate liquidity using tokens as collateral to borrow stables. Or, benefit from volatility by using stablecoins as collateral and taking a position on a token.
The borrow tab contains 3 main sections: 'Featured Markets', 'Quick Borrow' and 'Detailed View'.
The 'featured markets' section displays exciting GHOST asset markets that may be of interest to ecosystem participants.

Quick Borrow

The quick borrow user interface allows would-be borrowers to quickly open a borrow position by selecting a 'collateral asset' to deposit, 'borrow asset' to take a loan in, and amounts deposited and borrowed for each.
This section is most useful when the borrower already knows which asset they want to deposit as collateral and which asset they want to borrow as part of a loan. After choosing an amount to deposit and borrow, it is important to ensure that the initial LTV is at a comfortable level compared to the maximum allowable LTV. If the loan's LTV rises above the max LTV, then the provided deposit will be liquidated on ORCA and the borrower gets to keep any borrowed funds.

Detailed View

By selecting the 'Detailed View' option under 'Featured Markets', a list of all Assets that can be borrowed on GHOST will be displayed. The detailed view shows every possible asset that can be provided as collateral in order to borrow some target asset. For example, if you would like to borrow ATOM or stATOM this is what you would see in the 'Detailed View' section.
This view allows users to explore different possible assets they can provide as collateral to borrow a target asset, compare corresponding interest rates, the amount already borrowed, the amount still available to borrow, and the total amount of said borrow asset deposited on GHOST.
Participants can use this view to sniff out the best possible deals and arm themselves with the information to best keep their loans solvent to avoid liquidation. More on how GHOST borrowing works here.

Manage Position

By clicking on 'Borrow ...' at the far right, a new 'manage position' view shows up which allows users to manage their loan position by depositing more collateral or borrowing more of the target asset. The view also contains more current information about the loan such as the total amount you have deposited; the total amount you have borrowed; the interest rate; a graphical view of the maximum allowable LTV; the associated loan risk; the LTV; the collateral asset price; the liquidation price; and the total amount borrowed and deposited by all other GHOST users.
Next, there is an interface halfway down which allows you to evaluate and predict how depositing more (or withdrawing some) collateral AND borrowing more (or returning some) of the target borrow asset will impact the total collateral deposited, the LTV of the loan, the total amount borrowed, the loan's liquidation price, a borrow fee, and the loan's interest rate.
Furthermore, there are options to rebalance your loan or close the position entirely.
Last modified 21d ago