Overview

To borrow assets from a Liqwid Market, you must lock qTokens as Loan Collateral. Loans immediately start accruing interest, which must be repaid to fully unlock all collateral.

Prerequisites

To begin supplying assets to Liqwid, you must have:

• A Cardano Wallet with Wallet Collateral set
• Enough qTokens to collateralize your loan to your desired Health Factor. To mint qtokens, see HOWTO: Supplying (Lending, Earning) and Withdrawing
• Enough ADA to pay for Cardano’s transaction fees, minimum ADA requirement, and Liqwid’s Batching Fee.

How to Borrow (open a new loan)

1. Go to the "Assets to Borrow" section and click on "Borrow" for the asset you want to initiate a loan in.
2. Enter the amount you want to borrow and the collateral distribution for the position.
3. Submit the transaction by approving it in your Cardano browser wallet.
4. Once the transaction is confirmed, you have successfully opened a loan. Interest begins accruing on the loan immediately.

How to Modify an Existing Loan

Existing loans can be modified in three ways: adding an additional borrow to the loan, modifying the loan’s collateral, or a partial repayment of the loan. Fully repaying a loan is covered in the next section.

How to add an additional borrow

Adding a borrow to an existing borrow can be done in the identically to how the original borrow was done. See the “How to Borrow” section.

How to modifying a loan’s collateral (without a borrow or repay)

• Go to the “Your Borrows” section and click “Modify” for the loan you want to modify the collateral for.
• Select one or more collateral assets from the drop down list.