7. Borrow

Borrowing on Dough Finance is a feature that allows you to leverage your supplied assets to obtain other cryptocurrencies, such as USDC, up to a certain percentage of your collateral's value. Here’s a detailed guide on how to borrow from your DeFi Smart Account (DSA) safely.

Step-by-Step Guide to Borrowing Assets

Step 1: Start the Borrowing Process

Access the Borrow Function: In the Dough Finance interface, go to the "Assets to borrow" section and click the white "Borrow" button.

HINT: Press on the White "Borrow" button

Step 2: Choose the Amount to Borrow

1. Review Your Balances: A borrow popup will appear, showing your balance and the maximum available amount you can borrow.

2. Specify the Borrow Amount: For this example, click on "100%" to borrow the maximum available amount of USDC. Your Health Factor (HF) prediction will adjust accordingly, indicating the risk associated with the borrowing level.

HINT: Enter the amount you want to borrow

Step 3: Confirm the Borrowing Amount

1. Initial Confirmation: Review your borrowing amount and, once confirmed, click the "Confirm Borrow" button in the popup.

HINT: You can enter the amount manually or select a percentage

2. Final Confirmation: A secondary confirmation popup will appear. Confirm the amount again to proceed.

HINT: Once you confirm this is the correct amount you want to borrow

Step 4: Authorize the Transaction

1. Sign the Transaction: Your EOA wallet, such as MetaMask, will prompt you to confirm the borrow transaction. Follow your wallet's instructions to complete this step.

2. Press the back button: Once the transaction is processed, your assets will be transferred from Dough Finance to your wallet.

Step 5: Review Your Borrow Status

1. Check Your Supplies and Debts: After the transaction, your "Assets to supply" section will reflect the increased supply, and the "Your borrows" section will show the outstanding debt of the borrowed USDC.

2. Health Factor and Risk Details: Note that your Health Factor will have adjusted to 1.14, indicating the level of risk at maximum borrowing. For detailed risk analysis, click on "Risk Details" located in the upper right section near the Health Factor display.

Understanding the Risks

- Health Factor (HF): This metric helps you monitor the safety of your borrowed amount against your collateral. A lower HF means higher risk of liquidation.

- Current Loan-to-Value (LTV) and Liquidation Threshold: These metrics are crucial for understanding how close you are to the limits that might trigger liquidation. Visit the "What is Debt Collateral Ratio" section for more insights on these parameters.

HINT:

What’s Next?

After successfully borrowing, it's important to manage your liabilities wisely. Consider exploring our "Repay Guide" to learn about the options and procedures for repaying your borrowed assets to maintain a healthy portfolio and avoid financial risks.

Congratulations on leveraging your assets through Dough Finance! Be sure to monitor your account regularly and adjust your strategies as market conditions change.