Borrow
Borrowing assets from Zeru to unlock multiple benefits
A new Zeru user who supplies collateral can instantly borrow funds from the protocol and participate in DeFi strategies while building up their ZScore and CT balance to qualify for a ZCL in the future. Borrowing will earn a boosted 3x Zeru points! You can participate now on testnet to learn how Zeru works without using your own funds. Make sure you keep your loan’s health factor above 1 to avoid liquidation. If needed, the loan can be repaid in full or in part to improve the health factor or more collateral added.
How to Borrow
Go to the markets page and click actions on the asset you want to borrow, then select borrow.
To borrow users either need to have collateral deposited or need to have credit tokens, users can borrow up to the LTV (Loan-To-Value) of the collateral they deposited or credit token they have. Example 1: If the user has deposited 100 DAI to Zeru, DAI has an LTV of 90% so the user can borrow a maximum of $90 worth of assets.
Example 2: If the user has 100 crUSDC (Credit tokens in USDC) in Zeru, USDC has an LTV of 90% so the user can borrow a maximum of $90 worth of assets.
To learn more about asset information like LTV etc click on the asset in the markets page which will take you to detailed information about the asset
Enter the amount you wish to borrow or click the Max button to borrow the maximum you can borrow
NOTE: When you borrow maximum, your health factor may come near to 1, when your health factor becomes less than 1 then your collateral will be liquidated to cover the debt.
Verify the details in the transaction overview then click Borrow and confirm the transaction
Borrow Successful, add the borrowed token to your wallet to track your borrow balance
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