A step-by-step tutorial for Overcollateralized borrowing
Step-by-step instructions below👇:
Note: For a user to be able to borrow, they must make a deposit first.
Step 1: Connect your wallet to the Mahalend Application. Ensure you are connected to the Ethereum network.
Step 2: Deposit collateral.
Note: Once you make a deposit you will be only be able to borrow ARTH.
You can only borrow currently from ARTH under the Ethereum network.
Step 3: Click on the 'borrow' button and enter the amount you want to borrow. The max borrowable amount will be based on your collateral.
NOTE: Make sure to keep an eye on your health factor. The details regarding the health factor will be displayed according to the amount you enter.
NOTE: There are two borrow APY's you can choose from while borrowing ARTH:
Variable APY- Variable rate can increase and decrease depending on the amount of liquidity in the reserve.
Stable APY- It will stay the same for the duration of your loan.
When you input an amount you need to check the health factor alongside the type of borrow APY you want to select.
Step 4: You need to check the details and click on borrow followed by which you will get a wallet approval request to confirm the transaction.
Step 5: Once you have approved the transaction and get an update regarding the completion you can add the mToken to your wallet to track your supply balance.
You can add the mtoken to your wallet to track the supply balance.