XOXNO
  • 🔥Zero to DeFi
    • Introduction
    • DeFi Initiation
  • Smart Explorer
  • E-Mode Master
  • Pro Strategist
  • XOXNO Ecosystem
    • 📖Introduction
    • 🔁NFT Marketplace
    • 🚀NFT Launchpad
    • 🎯XOXNO Liquid Staking
    • 💱eGLD Liquid Staking
      • Protocol Overview
      • Advantages
      • User Actions
    • 🦫Borrow and Lending Protocol
      • Borrow
      • Supply
      • Repay
      • Withdraw
      • Liquidation
      • Flash Loans
      • E-Mode
      • Vault
      • Isolated Pools
      • Several positions for different markets
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  1. XOXNO Ecosystem
  2. Borrow and Lending Protocol

Borrow

PreviousBorrow and Lending ProtocolNextSupply

Last updated 3 months ago

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Borrowing tokens via the XOXNO Protocol allows users to access liquidity by using their supplied tokens as collateral, meaning they can access funds without selling their assets. However, borrowers face the risk of liquidation if their collateral value drops too low.

Key Features

  • Dynamic Interest Rates:

    • Interest rates adjust dynamically based on borrowing demand.

    • As more liquidity is borrowed, the utilisation rate (the percentage of available funds being used) increases.

    • Higher utilisation rates lead to increased interest rates, balancing supply and demand.

  • Collateral Management:

    • Borrowers can use their deposited tokens as collateral for loans.

    • Health factor: A key metric indicating the safety of a borrowing position. A higher health factor means the loan is well-collateralized.

Each token reserve is designed with specific rules to balance rewards for both borrowers and suppliers. To avoid liquidation, borrowers should monitor their collateral value and "health factor" (a measure of how safe their borrowing position is), ensuring their loans remain sufficiently covered as market conditions or interest rates change.

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