Borrow (Silk): How to take out and repay a loan
How to borrow SILK for a loan
Navigate to the Borrow feature
Select the collateral you want to deposit and borrow SILK
Make sure the toggle is set to "Deposit & Borrow:
Input the amount of collateral you want to deposit (collateral example would be wstETH or ATOM)
Now you can enter the total amount of SILK to borrow or use the Loan-to-Value (LTV) sliding bar.
Click Deposit Collateral & Borrow
Approve the Transaction
The LTV is the most important part of this process because it reflects the risk spectrum you choose for the loan. Max LTV is a higher risk for the liquidation of the asset if it’s price drops (in which case, you keep your Silk but the collateral is lost).
How to Withdraw Collateral and Repay Your Silk Loan
Navigate to the Borrow feature
Select the collateral you want to Withdraw & Repay
Make sure to set the toggle to "Withdraw & Repay:
Input the amount of collateral you want to withdraw or select MAX if you want to withdraw all of it.
Input the amount of SILK to repay
Click Withdraw Collateral & Repay
Approve the Transaction
Information provided in this post is for general informational purposes only and does not constitute formal investment advice. Please read the full disclaimer at shadeprotocol.io/disclaimer before relying on any information herein.
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