Borrow
Last updated
Last updated
How to Borrow in MultiLend?
Choose a lending pool, such as ETH/USDC (collateral token/supply token).
Deposit collateral token(ETH)
Borrow proper amount of supply token(USDC)
In MultiLend, loans are unlimited duration with automated variable interest rates and can be secured with nearly any tokenized collateral so long as there is a willing lender.
Borrowers take out loans by pledging collateral and withdrawing supply tokens. The borrower may add or withdraw collateral at any time, unless it would leave their loan insufficiently collateralized.
Loans have a minimum borrow size, an origination fee, and a two-tier liquidation penalty. The minimum borrow size is 10% of the pool’s average loan’s debt. The origination fee is the greater of 0.05% or one week of interest, and applies to all debt.
The initial liquidation penalty is 90 days of interest, and applies to all loans that get liquidated. If the borrower doesn’t bring their loan back into good standing during the one hour grace period, they are charged an additional 7% upon the first sale of their collateral. Borrowers can still bring their position back into good standing if the auctions haven’t processed the full loan.
