Borrow from Everst using your supplied assets as collateral. All loans are over-collateralized with no fixed repayment schedule—repay whenever you want.
Why Borrow?
Common Use Cases
1. Access Liquidity Without Selling Keep your stock token long positions while accessing cash for expenses or investment opportunities.
2. Tax Efficiency In many jurisdictions, borrowing isn't a taxable event, unlike selling.
3. Hedging Strategies Borrow stock tokens for portfolio balancing, flexibly adjusting positions based on market changes.
4. Leverage Trading Borrow to increase your position size (advanced strategy with higher risks).
5. Arbitrage Opportunities Borrow at lower rates to deploy capital in higher-yielding strategies.
How Borrowing Works
Process
Supply collateral to the protocol
Enable assets as collateral (if not automatic)
Borrow up to your limit based on collateral factors
Pay interest continuously on borrowed amount
Repay anytime to reclaim your collateral
Key Mechanics
Over-Collateralization Required
Your maximum borrowing capacity equals the sum of each collateral's value multiplied by its collateral factor.
Example:
If you supply $10,000 worth of AAPL tokens with a 75% collateral factor, you can borrow up to $7,500 worth of any asset. The $2,500 difference serves as a safety buffer protecting against price volatility.
Current Borrow Rates
Rates update dynamically based on utilization
Asset
Borrow APY
Available Liquidity
Utilization
Borrow Cap
Risk Level
USDT
5-15%
Market-dependent
40-80%
Configurable
Low
AAPL
6-18%
Market-dependent
30-70%
Configurable
Medium
TSLA
8-25%
Market-dependent
35-75%
Configurable
Medium-High
NVDA
10-30%
Market-dependent
40-80%
Configurable
Medium-High
SPY
4-12%
Market-dependent
25-65%
Configurable
Low-Medium
Note: Rates and liquidity change dynamically based on supply and demand
Borrowing Power Calculation
Your borrowing power depends on:
Value of supplied assets
Collateral factors of those assets
Current oracle prices
Collateral Factors
Asset Type
Collateral Factor
Max LTV
Liquidation Threshold
Recommended Strategy
USDT Stablecoin
85%
85%
88%
Conservative base allocation
Blue-chip Stock Tokens (AAPL, MSFT)
75%
75%
80%
Core holdings
Growth Stock Tokens (TSLA, NVDA)
70%
70%
75%
Growth allocation
ETF Indices (SPY, QQQ)
75%
75%
80%
Diversified investment
Detailed Example
Health Factor Management
Your Health Factor is crucial for avoiding liquidation:
Calculation
Health Factor equals your total collateral value multiplied by the liquidation threshold, divided by your total borrowed amount.
Health Factor Zones
Health Factor
Status
Recommendation
> 2.0
Very Safe
Comfortable buffer
1.5 - 2.0
Safe
Monitor occasionally
1.25 - 1.5
Caution
Monitor closely
1.0 - 1.25
Risk Zone
Add collateral or repay
< 1.0
Liquidation
Subject to liquidation
Real-World Scenario
Initial Position With $10,000 worth of AAPL collateral and 5,000 USDT borrowed, your Health Factor is 1.6 (safe).
Market Movement If AAPL drops 30%, your collateral value falls to $7,000 while debt remains 5,000 USDT. Your Health Factor drops to 1.12, entering the risk zone.
Required Action To restore safety, you need to either supply additional collateral or repay approximately $1,000 of your loan.
Interest Rate Dynamics
How Rates Are Determined
Everst uses a Jump Rate Model that adjusts rates based on utilization:
When utilization is below 80%, rates increase gradually. Above 80%, rates jump sharply to ensure liquidity remains available for withdrawals.
Typical Parameters:
Base Rate: 2% APY
Multiplier: 0.15 (15% slope)
Kink: 80% utilization
Jump Multiplier: 1.0 (100% slope after kink)
Interest Accrual
Interest accrues continuously with each block:
Compounds continuously
No payment schedule
Added to your borrow balance
Paid when you repay
Example Interest Calculation:
Borrowing 10,000 USDT at 7% APY results in approximately $1.92 daily interest, $58 monthly interest, and $700 annual interest.