<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/eb343ffe-7444-4a95-b024-035538795c4f/bot_profile.png" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/eb343ffe-7444-4a95-b024-035538795c4f/bot_profile.png" width="40px" /> Finished depositing assets on BiFi? You can now use your deposits as collateral to borrow against!

</aside>

In this page

Previous

Lending - Depositing

Next

Rewards

1. Overview

You can borrow assets against your deposited collateral. The amount you can borrow is determined by the collateral ratio of assets you deposited. You can easily check the ratio of your deposit to borrows, or loan-to-value ratio (LTV) in the colored bar below the top menu.

Earn as you borrow with BiFi tokens

When you repay your borrows, you have to pay your accrued interest. However, because BiFi is currently rewarding users of BiFi with BiFi tokens, you can actually earn as you borrow

For example, you can borrow DAI at 11.02% interest rate, but by earning BiFi tokens you actually earn approximately 15.54%. As a result, you can earn 4.52% even as you borrow!

Related article: Rewards

https://s3-us-west-2.amazonaws.com/secure.notion-static.com/2c2dd921-05c3-41ad-b0ff-5d6aa59ed3af/_2021-03-18__9.42.45.png

2. Borrowing

If you deposited your assets to BiFi, you can now use your deposit as collateral to borrow other assets.

Click Borrow for the asset you want to borrow, and set your desired amount.

When you click Borrow , you will be prompted to confirm the transaction on MetaMask. When the transaction is confirmed, MetaMask will notify you and you can check your borrowed asset.

<aside> 💡 Once you approve the transaction, you can leave the dialog before it is confirmed, as it is working directly on the blockchain.

</aside>

https://s3-us-west-2.amazonaws.com/secure.notion-static.com/dbdedef0-bdef-4923-baca-b68fe1394f04/Borrow_BSC_v2.gif

<Page Overview>

<aside> ⚠️ Your assets can be subject to liquidation, if the ratio of your deposited assets to your borrowed asset exceeds the collateral ratio, or Loan-To-Value Ratio (LTV). BiFi only allows you to borrow up to the maximum borrow limit, but your LTV can exceed this in three scenarios:

  1. Your borrowed asset increases in price, making your borrowed amount bigger, 2) Your deposited asset decreases in price, making your deposit amount smaller, or 3) your borrows plus accrued interest is more than your deposits plus accrued interest.

</aside>

https://s3-us-west-2.amazonaws.com/secure.notion-static.com/f6501c08-f8aa-4bef-ae11-511961397a32/_2021-03-18__9.43.35.png

Borrow Amount

The amount you want to borrow.

APY

The amount of interest you can earn on your borrow in a year.

Token Price

Current price of the asset you want to borrow.

Borrow Limit

The maximum amount of assets you can borrow after you borrow the selected amount. The more assets you borrow, the lower the borrow limit becomes, proportionate to the collateral ratio.

<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/87051c17-b29a-4e7d-9344-d4bbc847e68c/bot_profile.png" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/87051c17-b29a-4e7d-9344-d4bbc847e68c/bot_profile.png" width="40px" /> Borrow limit before borrow >> after borrow $46.64 >> $23.43 (if you borrow $23.20)

</aside>

Used Borrow Limit