7. Repay
Repaying your borrowed assets on Dough Finance is a crucial step in managing your DeFi engagements responsibly. This guide provides a detailed walkthrough on how to repay your debt, whether partially or in full, directly from your Externally Owned Account (EOA) or your DeFi Smart Account (DSA).
Step-by-Step Guide to Repaying Debt
Step 1: Initiate the Repayment Process
1. Navigate to Your Borrowed Assets: In the Dough Finance interface, go to the "Your borrows" section and locate the debt you wish to repay, such as "USDC."
2. Start the Repayment: Click on the white "Repay" button next to the USDC debt.
Step 2: Choose the Repayment Amount
1. Decide on the Repayment Percentage: If you do not have enough USDC to cover the entire debt, consider repaying a portion, such as 75%. This allows you to manage your debt without needing to acquire additional funds immediately.
2. Enter the Amount: Select the percentage of the debt you wish to repay by clicking on the corresponding option, e.g., 75%.
Step 3: Confirm the Repayment
1. Review the Repayment Details: Once you press the "Confirm Repay" button, a confirmation popup will display the amount of USDC you are repaying and your updated Health Factor, which predicts how this repayment will improve your financial stability. 2. Finalize the Repayment: After reviewing the details, confirm the repayment by pressing the "Confirm Repay" button again.
Step 5: Complete the Repayment
Sign the Repayment Transaction: A final transaction popup will ask you to approve the repayment of USDC. Click "Next" to review the transactions.
Approve the Repayment Transaction: A final transaction popup will ask you to approve the repayment of USDC. Click "Approve" to finalize the approval transaction.
A second transaction will pop-up, asking you to sign the USDC repayment transactions. Once you are ready, press "Confirm".
Once you have submited the Repayment transaction and the "All done!" message appears you can close it by pressing the "Back" button.
Step 6: Transaction Confirmation
Verify Completion: After submitting the repayment transaction, a message stating "All done!" will confirm the successful repayment. Your Health Factor will reflect the updated value, showing an increase from 1.14 to 4.55, indicating improved financial health.
Reviewing Your Financial Health
- Check Your Health Factor: After repaying, it's wise to review your Health Factor and other risk details to ensure you maintain a safe borrowing level.
- Liquidation Risks: Lowering your debt improves your Health Factor and decreases the risk of liquidation, securing your assets against market volatility.
What’s Next?
Now that you've successfully managed your debt, you might be interested in other financial operations like swapping assets. Continue your journey with our "Swap Guide" to learn how to efficiently exchange one type of cryptocurrency for another on Dough Finance.
Congratulations on effectively managing your liabilities on Dough Finance! By responsibly handling your debt, you maintain control over your financial health and ensure your engagements in the DeFi space are sustainable.
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