Deposit & Borrow
Last updated
Last updated
Our lending vaults enable you to deposit assets and then to borrow kUSD against your collateral, with which you can then use to and/or . Karvana uses to provide isolated lending markets, that allow users to adjust their risk tolerance according to the volatility and risk profile of the collateral they decide to use.
Select the tab, where you will be able to see a variety of crypto assets that can be used as collateral. Here are some examples:
Across the top, you will see:
COMPONENT -These are the components you can use as collateral to borrow kUSD.
Total Value Locked (TVL) -This shows the total value of the components that are deposited in each market by all users.
LEFT TO BORROW -This shows how many kUSD are still available to be borrowed using that component. Once this number goes to 0, no leverage position or new loans can be opened. In order to borrow more kUSD, users need to wait for the replenishing of that particular market!
INTEREST -This is the annualized percentage of which your debt will grow each year.
LIQUIDATION FEE -This is the discount a liquidator will get when liquidating a position that has been flagged for liquidation.
After selecting a vault, you will be presented with the following page:
These two buttons simply toggle the frame below to either borrow or repay kUSD.
Open positions can be managed in the same window as used to initially open a position. Here we can:
Add collateral
Borrow more kUSD(assuming the maximum has not been met)
Repay borrowed kUSD
Remove collateral (based on the user current debt level/collateral ratio)
On the right, you will see a frame that contains dynamic information pertinent to this specific collateral asset. If you adjust your position, these numbers will adjust accordingly. Please note that every time you edit your position (add more collateral or borrow more kUSD) these numbers will adjust accordingly. The liquidation price stated here is the one that will decide when your total position gets liquidated or not.
The following will describe what each parameter details.
Collateral deposited - This is the amount of collateral that you have supplied to this position.
Collateral value - This is the total value in USD of the collateral you have supplied to this position
kUSD borrowed - This is the total value and quantity of kUSD you have borrowed. The protocol always considers 1kUSD to equal 1USD
Liquidation price - This is the USD price of the collateral at which your position will be flagged for liquidation.
kUSD left to borrow - This is how many kUSD you may still borrow before reaching your maximum allowance. To adjust this allowance you may either repay your debt and/or add collateral.
1kUSD = 1USD - This static number reminds the user that the protocol always considers 1kUSD to equal 1USD.
1yvWFTM = 1.3384kUSD - This is current price of your collateral token, (in this case yvWFTM). If this number equals the Liquidation price, you will be flagged for liquidation.
This bar gives the users a visual representation of the status of their current positions. Again, this bar is isolated to each specific collateral asset.
Here are a few factors:
A full bar means it is very safe, and an empty bar means this position is flagged for liquidation.
If you supply collateral but don't borrow any kUSD your bar will be full.
NOTE: For collaterals that have stable coins as the underlying asset, the bar has been magnified by 10 to make for a better visual representation of the risk level.
This number shows you how much your collateral price needs to fall for you to be flagged for liquidation
This window simply displays the balances of these tokens in your currently connected wallet.
This window displays the static parameters of this collateral type.
Maximum collateral ratio - Maximum collateral ratio represents the maximum amount of debt a user can borrow with a selected collateral asset.
Liquidation fee - This is the discount a liquidator gets when buying collateral flagged for liquidation.
Borrow fee - This one-time fee is added to your debt every time you borrow kUSD. As an example, if you borrow 100 kUSD your debt will be increased to 100.5 kUSD but you will actually receive 100 kUSD.
Interest - This is the annualized percent that your debt will increase each year.
Let’s start with the 1st window and the two buttons above.
First, decide how much assets you will deposit as collateral. Then decide how much kUSD will be borrowed by either typing in the numbers or using the percentage buttons below. Your expected liquidation price and position health will automatically be calculated. Remember, when the price of your collateral drops to the liquidation price and your position health reaches 0, you will be . When you're ready, go ahead and press "Add Collateral And Borrow" (you can add collateral/borrow in 2 separate transactions, or all in 1 go).
