Borrowing

In the fast-moving world of crypto, people often find themselves in two camps: some have crypto and need quick access to cash but don’t want to sell their tokens, while others are holding onto stablecoins they’re not currently using. The Kopi Money Market is where these two groups can meet and help each other out.

Providing Collateral

If you want to take out a loan, the first step is to deposit some of your crypto as collateral. The amount you can borrow depends on how much your crypto is worth and the rules for each type of coin. A key number to understand here is the Loan-To-Value (LTV) ratio. For example, if you deposit $100 of a token with a 50% LTV, you can borrow up to $50.

To get started, head over to the Borrowing page. There, you’ll find a list of all the coins you can use as collateral, along with details like how much you’ve deposited, its USD value, its LTV ratio, and the current price. Just hit Provide to deposit the amount you want.

Borrowing Funds

Once you’ve deposited your collateral, you can apply for a loan in the Borrowable Assets section. This part of the page shows what assets are available to borrow, how much you’ve already borrowed, the value in USD, and the current interest rates.

Click Borrow on the asset you want, and you’ll see how much you can borrow based on your collateral and the available supply. It’ll also show your credit line usage, which tells you how close you are to your borrowing limit. When you confirm the loan, the funds are sent straight to your wallet, and the page updates to show your new balance and rate.

Under My Statistics, you can see your total borrowed amount and the value of your collateral. Keep in mind, once you’ve borrowed funds, you won’t be able to withdraw all your collateral. You need to leave enough behind to cover your loan. If you try to take out more collateral, you’ll see how close you are to maxing out your limit.

Liquidations

If your loan gets too close to the limit, either because interest is building up or your collateral value drops, part of your collateral might get automatically sold off to repay your loan. There’s no extra penalty for this, but it’s better to stay ahead of the curve. You can lower the risk by paying off some of the loan or adding more collateral.

To repay, just go to the Borrowable Assets section and hit Repay. You can pay back part of the loan or the whole thing. If you accidentally send more than you owe, the extra will be refunded.