Borrowing
Last updated
Last updated
How to borrow liquidity in Levvy using your Fungible Tokens 101
Levvy offers borrowers the opportunity to access liquidity promptly through a competitive lending system, enabling them to optimize their loan-to-value ratio.
With this system, lenders compete with each other to provide the highest LTV, ensuring borrowers can maximize their borrowing potential.
Once you accept a loan offer, your tokens will be locked in the Levvy smart contract as collateral. This means transferring ownership of the FTs to a smart contract that holds it securely until the loan is repaid.
After locking your assets, the agreed-upon loan amount is disbursed to you instantly.
If you fail to repay the loan within the agreed-upon terms, the lender is able to foreclose the tokens used as collateral, and the assets will be transferred to their wallet. At that point, you will not have the ability to access those assets.
With , you do have the option to extend a loan on new terms in case you aren't able to pay the loan in time. This feature is now open to everyone!
Our team conducts a thorough analysis of loan metrics and utilizes an algorithm to carefully balance the supply and demand between lending and borrowing. This enables us to determine the most suitable interest rate for each collection, ensuring an optimal lending experience.
Open the website and connect the wallet of your preference;
Choose Tokens:
Click on "Start Borrowing Now";
Choose the Token from which you have FTs to use as collateral;
Follow the steps, sign the transaction, and you're done!
When borrowing, enter the amount of token that you would like to borrow against. The module will let you know the average LTV based on your total tokens.
This amount changes, because you may be borrowing from multiple lenders at once, who each have different rates. The module will also let you know the fees and interest that you will need to repay on the loan.