Borrowing

How do I borrow?

Before borrowing you need to supply approved asset to be used as collateral (check out the Supplying & Earning FAQ section for more info). After this, you can execute a borrow from the Nexus smart contracts or a user interface. On the Nexus Market Interface, head to the Borrow section and click on “Borrow” for the asset you want to borrow. Adjust the amount you need based on the available collateral balance, and confirm the transaction in your wallet.

How much can I borrow?

The maximum amount you can borrow depends on the value you have supplied and the available liquidity. For example, you can’t borrow an asset if there is not enough liquidity or if your health factor doesn’t allow you to. You can find all collateral available and their specific borrow parameters in the risk parameters dashboard.

Why would I borrow instead of selling my assets?

Selling your assets means closing your position on that particular asset. Hence, if you are long on the asset, you would not be entitled to the potential upside value gain. By borrowing you are able to obtain liquidity (working capital) without selling your assets. Users are mainly borrowing for unexpected expenses, leveraging their holdings or for new investment opportunities.

How do I repay my borrow position?

Borrow positions can be repaid through Nexus smart contracts or a user interface. On the Nexus Market Interface, go to the Borrowings section of your dashboard and click on the "Repay" button for the asset you borrowed and want to repay. Select the amount to repay and confirm the transaction.You repay your borrow position in the same asset you borrowed.

For example, if you borrow 1 USDOX you will pay back 1 USDOX + interest accrued. The Nexus Interface also integrates a repay with collateral feature, which uses flashloans and DEX integrations to allow borrow positions to be repaid with zTokens. Availability of repay with collateral feature on Nexus markets can be found here.

How much would I pay in interest?

The interest rate you pay for borrowing assets depends on the supply and demand ratio of the asset and interest rate curve parameters determined by Nexus Governance. You can find the current borrow rate for each borrowable token in the Markets tab of the Nexus Market Interface. Historic rates can be viewed by clicking on individual tokens to view their corresponding reserve details page.

When do I need to payback the borrow position?

There is no fixed time period to pay back the borrow position. As long as your position is properly collateralised, you can borrow for an undefined period. However, as time passes, the accrued interest will grow making your health factor decrease, which might result in your supplied assets becoming more likely to be liquidated.