Euler User Guide: Borrowing and Lending
Users can learn the basics of depositing, borrowing, repaying and withdrawing assets on the Euler dApp.
As part of the Euler User Guide series, and after getting more familiar with the Euler UI, users can learn some of the core functions on Euler in this latest guide on borrowing and lending.
This article serves to help as an educational guide on utilising the Euler platform to borrow and lend, and is not financial advice.
The screenshots below make use of Euler’s Ropsten testnet where users can practice and learn using testnet tokens. Users unfamiliar with testnets can read this guide or watch this video.
Borrowing and Lending Guide
In the Euler dApp (testnet), click on the Quick Action button. Click on the Deposit tab, if it’s not already selected. Users can decide which account/subaccount to use and the asset they want to deposit.
After deciding on an account and asset, click on the Enable button to give the Euler dApp permission to access the selected asset. Users can change their gas settings or even the amount of tokens the dApp has access to through the Edit Permission button. Hit confirm.
After the transaction processes, users can decide how many tokens they want to deposit. Use the slider or enter the desired amount and click the Deposit button. The Enter Market check box enables deposited asset to become collateral. This can be turned on/off in the account page too.
Users will see the Quick Action menu dissapear and their deposit request sent to the Transaction Builder on the right side of the screen.
By navigating to the Dashboard or Account page with the Transaction Builder open, users can see a simulated view of their accounts assuming the latest deposit request is processed. Cancelling the request by clicking on Remove All in the Transaction Builder will terminate the simulated view.
The assets will deposit into the user’s account once the transaction has successfully processed.
In order to borrow other assets, users must have deposited a collateral tier asset. Not every crypto asset is qualified to be a collateral tier asset, so check the asset’s tier on the main page’s asset table.
Note that non-collateral tier assets can be borrowed if its the same asset deposited (self collateralisation), but more on that in another guide.
Go to the Quick Action menu, select Borrow and choose the account to use and asset to borrow. Decide on the amount of tokens to borrow but take note of the Safe Max, Liquidation, and Max selectors on the sliders. Going past the Liquidation value will liquidate the user’s collateral.
If the asset is eligible to receive EUL tokens for mining, the values and costs will be shown at the bottom. Click the Borrow button to continue.
Just like in the depositing steps, users can see a simulated view of how the borrow will impact their accounts on the Dashboard and Account pages.
Users can see their health score and estimated time to liquidation (TTL) to see how close the position would be to being liquidated. If the health score and TTL are undesirable, the user can cancel the transaction request in the Transaction Builder by selecting Remove All and starting over again.
Users should also consider the TTL and Health Score are calculated at current prices and interest rates. If the prices and interest rates of the deposited and borrowed assets change, these values will also change.
Once the user has finalised their borrowing decisions, they can select the Send txs button in the Transaction Builder to proceed and confirm the transaction.
Once the transaction has processed, the borrowed asset will appear in the account’s liabilities section. The user can find the borrowed asset in their wallet.
TIP: Users can deposit borrowed assets back into Euler!
Select Repay in the Quick Action menu and choose the account with borrowed assets. If the user has the assets in their wallet, select Wallet Balance.
If the user deposited the borrowed assets back into the Euler dApp, select Euler Deposits in the FROM menu. Users can also repay using a different asset here by selecting another asset which will swap and repay the debt.
Then click on Enable and confirm the transaction just like before. Once completed, the user will be able to determine the amount of tokens to repay. Press Send in the Transaction Builder and confirm the transaction.
TIP: If there is a small amount of borrowed assets still in the account, these are debt from accrued interest. Users can pay it off using the Repay action and changing FROM Wallet Balance to Euler Deposits. Swaps are disabled on Testnet.
Users can withdraw their assets by going to the Quick Action menu and selecting Withdraw. Choose the account to use and asset to withdraw, along with the desired amount of tokens.
Click on the Withdraw button, Send txs in the Transaction Builder, and confirm the transaction. Tokens will return to the user’s wallet once the transaction is complete.
In the screenshot above, the total amount of deposited assets cannot be withdrawn because there are still assets being borrowed.
TIP: If a collateral violation warning prevents withdrawal, there might be debt assets left to be repaid.
Users who have enable Euler to have access to their tokens can revoke that access by going to the Quick Action menu and selecting the Allowances tab. Users can see the pre-approved markets and change the number of tokens allowed or revoke access completely. Additionally, users can search for tokens to create a new allowance.
Clicking on Revoke, Max, or Update will start a transaction for the user to confirm.
Hopefully, this guide on borrowing and lending on the Euler dApp has helped users learn about the core features of the platform. In the next guide, users can learn more about advanced functions such as mint, burn, transfer and more.
Also note that this page will be updated to reflect changes on the Euler UI, so feel free to check back whenever new updates take place.
Join the community Discord and feel free to ask any questions. Please make sure to browse other guides in the main collection as well.
Euler is a capital-efficient permissionless lending protocol that helps users to earn interest on their crypto assets or hedge against volatile markets without the need for a trusted third-party. Euler features a number of innovations not seen before in DeFi, including permissionless lending markets, reactive interest rates, protected collateral, MEV-resistant liquidations, multi-collateral stability pools, sub-accounts, risk-adjusted loans, and much more. For more information, visit euler.finance.
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