Borrow
This page will give a description of the BORROW page
Last updated
This page will give a description of the BORROW page
Last updated
Abracadabra uses Kashi Lending Technology to provide isolated lending markets, that allow users to adjust their risk tolerance according to the collateral they decide to use. To read more about how isolated lending Markets and Kashi works, and why they are different from traditional lending protocols, please refer here.
Head over to abracadabra.money and click on BORROW.
The borrow section of the website displays a variety of ibTKNS that can be used as collateral. Here are some examples:
Across the top, you will see:
COMPONENT -These are the components you can use as collateral to borrow MIMs.
Total Value Locked (TVL) -This shows the total value of the components that are deposited in each market by all users.
LEFT TO BORROW -This shows how many MIMs are still available to be borrowed using that component. Once this number goes to 0, no leverage position or new loans can be opened. In order to borrow more MIM users need to wait for the replenishing of that particular market!
INTEREST -This is the annualized percentage of which your debt will grow each year.
LIQUIDATION FEE -This is the discount a liquidator will get when liquidating a position that has been flagged for liquidation.
To borrow some MIMs, simply click anywhere in the frame of the component you want to use as collateral. We are going to use yvUSDT as an example.
Once your component has been selected, the BORROW/REPAY section will appear.
These two buttons simply toggle the frame below to either borrow or repay MIMs.
First, decide how much yvUSDT will be used as collateral. Then decide how much MIM will be borrowed by either typing in the numbers or using the percentage buttons below.
The light blue SAFE indicator will help warn us if we have put settings that are over risky. The LIQUIDATION PRICE will display the component price at which we can be flagged for liquidations.
A liquidation price of $0.71 means that if your interest-bearing token drops to or below $0.71, your position is at risk of being liquidated. The liquidation price shown is always linked to the interest-bearing token which is used to borrow MIM. You can read more about liquidations in the dedicated section of this Wiki. If you already have a position open, make sure to check the updated Total Liquidation price of that position in the MY OPEN POSITION box.
This toggle checkbox allows users to pay a small gas fee to have Abracadabra retrieve the most recent oracle price for the component they are using to borrow MIM. Bear in mind that every time someone interacts with one of our markets with this box ticked, the price will be updated retrieving the most updated one from the oracle and displaying it in the UI for every user.
We are currently looking into automating this process, stay tuned!
When we are ready, we can press the ADD COLLATERAL AND BORROW button. This will remove our ibTKNs and place them in the contract, and put the respective MIM tokens in our wallet.
Open positions can be managed in the same window as used to initially open a position. Here we can:
Add collateral
Borrow more MIM (assuming the maximum has not been met)
Repay borrowed MIM
Remove collateral (based on the user current debt level/collateral ratio)
On the right, you will see a frame called MY OPEN POSITION that contains dynamic information pertinent to this specific position. If you open a position using a different component these numbers will adjust to that isolated market. If you adjust your position, these numbers will adjust accordingly. Please note that every time you edit your position (add more collateral or borrow more MIMs) these numbers will adjust accordingly. The liquidation price stated here is the one that will decide when your total position gets liquidated or not.
The following will describe what each parameter details.
Collateral deposited - This is the amount of component tokens you have supplied to this position.
Collateral value - This is the total value in USD of all the components you have supplied to this position
MIM borrowed - This is the total value and quantity of MIM you have borrowed. The protocol always considers 1MIM to equal 1USD
Liquidation price - This is the price of the component at which your position will be flagged for liquidation.
MIM left to borrow - This is how many MIMs you may still borrow before have reached your maximum allowance. To adjust this allowance you may either repay or add collateral.
1MIM = 1USD - This static number reminds the user that the protocol always considers 1MIM to equal 1USD.
1yvUSDT = 1.0097MIM - This is current price of our component, (in this case yvUSDT). If this number equals the Liquidation price, you will be flagged for liquidation.
This bar gives the users a visual representation of the status of their current positions. Again, this bar is isolated and specific to the current component page opened.
Here are a few factors:
A full bar means it is very safe, and an empty bar means this position is flagged for liquidation.
If you supply collateral but don't borrow any MIMs your bar will be full.
NOTE: For collaterals that have stable coins as the underlying asset, the bar has been magnified by 10 to make for a better visual representation of the risk level.
This number shows you how much your collateral price needs to fall for you to be flagged for liquidation
This window simply displays the balances of these tokens in your currently connected wallet.
This window displays the static parameters of this collateral type. These numbers will remain constants unless governance elects to modify them.
Maximum collateral ratio - Maximum collateral ratio represents the maximum amount of debt a user can borrow with a selected collateral token.
Liquidation fee - This is the discount a liquidator gets when buying collateral flagged for liquidation.
Borrow fee -This fee is added to your debt every time you borrow MIM. As an example, if you borrow 1000 MIMs your debt will be increased to 1000.5 MIMs but you will actually receive 1000 MIM. These 0.5 MIMs will be distributed to sSPELL holders.
Interest - This is the annualized percent that your debt will increase each year. The interest fee is later distributed to sSPELL holders.
Let’s start with the 1st window and the two buttons above.
