Borrowing Assets

In this tutorial, we will take you through the comprehensive steps to borrow assets on the Mars dApp efficiently. Borrowing assets provides you the opportunity to leverage your holdings to potentially enhance your investment returns. Let's delve into the detailed process:

Step 1: Navigating to the Borrow Page

To start, head over to the "Borrow" page on the Mars dApp, which is the gateway to various borrowing options available to you.

Step 2: Selecting an Asset to Borrow

Choose an asset that aligns with your borrowing strategy. Click on the "Borrow" option next to the desired asset to proceed to the next step.

Step 3: Determining the Borrow Amount and Leverage

In this phase, specify the amount you want to borrow. The Mars dApp allows you to borrow an amount exceeding the collateral available in your account as long as the Health Factor (HF) remains greater than 1, essentially utilizing leverage.

Furthermore, you have the option to toggle the "Receive funds to Wallet" feature. When activated, this turns off leverage, permitting borrowing only by over-collateralizing your position. This means you can engage in DeFi activities on other protocols using your entire credit account as collateral for a loan.

Step 4: Transaction Confirmation

To move forward, authorize the transaction by signing and confirming it, establishing your borrow position securely.

Step 5: Managing Your Borrow Position

Congratulations, you have created a borrow position! You have the flexibility to manage this position efficiently by either borrowing more assets or initiating repayment based on your financial strategies.

Step 6: Monitoring Your Account Health

Stay informed about the status of your account by utilizing the "Account Health" tab. This feature allows you to track various aspects of your account, including your current debts and balances, facilitating informed decision-making.