Users can borrow against collateral they provide to the platform.
A user has borrowed $400k out of a maximum $500k.
To borrow, a user must click the relevant asset in the market table and toggle to the borrow modal.
The user enters an amount less than their Max Additional Borrow and clicks "Borrow STBL" to initiate a borrow transaction to be sent. Below, for a user using the MyAlgo Wallet, the pop-up displays transactions that are being prepared to be signed and sent.
MyAlgo Borrow Group Transaction
The user presses continue and enters their password to send the signed transaction to the blockchain. Algofi issues group transactions in order to keep the market fully synchronized and up to date.
After borrowing from the protocol, a user will see their balances increase by the amount borrowed:
Balances after borrowing 1mm YLDY
A user will also see a borrow asset appear in their "Borrowed" section.
YLDY appears in the "Borrowed" section.
Lastly, a user's borrowed will increase to reflect their growing borrow. Here, the user has borrowed $17,640 worth of YLDY against their $500,000 max borrow for a borrow utilization rate of 3.53%. When a user's borrow utilization exceeds 100%, they are at risk of being liquidated. To learn more, see Liquidating Users.
User borrow utilization after borrow.