How to Borrow
Step-by-Step Borrowing Guide
Borrowing on Everst lets you access liquidity without selling your assets. This guide walks you through the entire process.
Prerequisites
Before borrowing, you must:
✅ Have supplied assets to use as collateral
✅ Enable those assets as collateral
✅ Understand your borrowing capacity
✅ Have native tokens (BNB, etc.) for gas fees
Understanding Your Borrowing Power
Calculate Your Capacity
Your maximum borrowing amount depends on:
Borrowing Power = Σ(Collateral Value × Collateral Factor)Example Calculation
You supply:
- $5,000 worth of AAPL stock tokens (75% collateral factor)
- 2,000 USDT (85% collateral factor)
Your borrowing power:
AAPL: $5,000 × 0.75 = $3,750
USDT: $2,000 × 0.85 = $1,700
Total: $5,450Safety Recommendation
Never borrow your maximum! Keep a safety buffer:
Conservative: Borrow < 50% of capacity
Moderate: Borrow < 70% of capacity
Aggressive: Borrow < 85% of capacity
Step-by-Step Process
Complete borrowing journey from collateral setup to loan management
Step 1: Check Your Collateral
Go to "Dashboard"
View your supplied assets
Ensure "Collateral" is enabled
Note your "Borrowing Power"
If collateral isn't enabled:
Click the asset
Toggle "Use as Collateral"
Confirm transaction (gas varies by network)
Step 2: Choose Asset to Borrow
Navigate to "Markets"
Review borrowable assets
Check important metrics:
Borrow APY: Interest rate you'll pay
Available Liquidity: Amount you can borrow
Total Borrowed: Market utilization
Recommended Borrowable Assets
For Beginners:
USDT: Stable, predictable debt with 3-8% rates
SPY: Diversified ETF with 4-12% rates
For Advanced Users:
AAPL: Blue-chip stock tokens with 6-18% rates
TSLA: High-growth stock tokens with 8-25% rates
NVDA: AI concept stocks with 10-30% rates
Step 3: Enter Borrow Amount
Click "Borrow" on your chosen asset
Enter the amount to borrow
Monitor the impact on your metrics:
Health Factor (keep > 1.5)
Borrowing Power Used
Estimated APY
Real-time Safety Check
The system will display:
New Health Factor
Liquidation price
Interest cost estimates
Recommended safety buffer
Step 4: Review and Confirm
Before confirming, verify:
✅ Health Factor remains safe (>1.5)
✅ Interest rate is acceptable
✅ You have a repayment plan
✅ Gas fee (varies by network)
Step 5: Execute Transaction
Click "Borrow"
Review in your wallet:
Borrowing amount
Network fee
Click "Confirm"
Wait for confirmation (~3-10 seconds)
Step 6: Receive Borrowed Assets
Once confirmed:
Assets arrive in your wallet
Interest starts accruing immediately
Dashboard updates with your position
Managing Your Loan
Monitor Your Position
Check regularly:
Health Factor: Your liquidation safety
Accrued Interest: Total interest owed
Borrow APY: Current rate (variable)
Total Debt: Principal + interest
Health Factor Management
> 2.0
Very Safe
No action needed
1.5 - 2.0
Safe
Monitor periodically
1.25 - 1.5
Caution
Consider adding collateral
1.0 - 1.25
Risk
Add collateral or repay ASAP
< 1.0
Liquidation
Subject to liquidation
When to Take Action
Add collateral or repay when:
Health Factor drops below 1.5
Collateral prices are declining
Interest rates spike significantly
Market volatility increases
Stock Token Specific Borrowing Strategies
Strategy 1: Liquidity Without Selling
Use Case: Need cash but bullish on your stock tokens
Example:
Supply 10 AAPL stock tokens ($20,000 worth)
Borrow 8,000 USDT
Use USDT for expenses
Keep AAPL exposure
Strategy 2: Leveraged Long Position
Use Case: Amplify exposure to stock tokens
Example:
Supply $10,000 worth of TSLA
Borrow 7,000 USDT
Buy more TSLA with USDT
Profit if TSLA gains > borrow APY
Warning: High risk, can amplify losses
Strategy 3: Hedging Strategies
Use Case: Profit from price declines or risk hedging
Example:
Supply 10,000 USDT
Borrow 1 TSLA stock token
Sell TSLA immediately
Buy back cheaper later to repay
Strategy 4: Stock Rotation Strategy
Use Case: Rotate positions based on stock performance
Example:
Supply strong-performing NVDA stock tokens
Borrow underperforming traditional bank stocks
Adjust positions based on fundamental analysis
Strategy 5: Yield Arbitrage
Use Case: Earn spread between rates
Example:
Borrow at 5% APY on Everst
Deploy in 8% APY yield farm
Earn 3% spread (minus risks)
Interest Calculation
How Interest Accrues
Interest compounds continuously with every block:
Daily Interest = (Borrowed Amount × Borrow APY) / 365
Monthly Interest = Daily Interest × 30Interest Cost Examples
Stablecoin Borrowing (USDT)
Borrow: 10,000 USDT at 6% APY
Daily Interest: 10,000 × 6% ÷ 365 = 1.64 USDT
Monthly Interest: 1.64 × 30 = 49.3 USDT
Annual Interest: 600 USDTStock Token Borrowing (AAPL)
Borrow: $5,000 worth of AAPL at 12% APY
Daily Interest: $5,000 × 12% ÷ 365 = $1.64
Monthly Interest: $1.64 × 30 = $49.3
Annual Interest: $600Common Scenario Handling
Scenario 1: Adding More Collateral
When Health Factor drops:
Go to "Markets"
Supply more assets
Health Factor improves immediately
No need to repay
Scenario 2: Partial Repayment
To reduce debt burden:
Click "Repay" on borrowed asset
Enter partial amount
Confirm transaction
Interest stops accruing on repaid portion
Scenario 3: Market Volatility
During price swings:
Monitor Health Factor closely
Set price alerts
Have reserve funds ready
Consider reducing position size
Scenario 4: Stock-Specific Events
Pre-Earnings Season:
Monitor earnings dates for held stocks
Adjust positions before volatility increases
Consider reducing leverage ratios
Major News Events:
Follow stock-related news
Operate conservatively before major announcements
Prepare for quick market response
Stock Market Timing Considerations
Trading Hours Impact
US Stock Trading Hours: Most active price updates
After-Hours/Weekends: Relatively limited price movement
Holidays: Traditional markets closed but DeFi continues operating
Optimal Borrowing Timing
Low Volatility Periods: Establish leveraged positions
Pre-Earnings Season: Increased stock borrowing demand
Pre-Market Opening: Prepare for intraday trading strategies
Tips for Safe Borrowing
For Beginners
Start with small amounts
Borrow USDT only
Keep Health Factor > 2.0
Understand liquidation risks
Have clear repayment plan
Best Practices
Never borrow maximum capacity
Diversify collateral types
Monitor market conditions
Keep emergency reserves
Set up price alerts
Check rates daily
Plan for worst-case scenarios
Risk Management
Calculate liquidation prices
Stress test your positions
Account for interest accumulation
Consider insurance options
Use stop-loss strategies
Advanced Risk Control
Diversify Collateral: Don't concentrate all collateral in single stock
Set Alerts: Configure alerts for critical price levels
Regular Rebalancing: Adjust positions based on market changes
Liquidity Management: Always ensure funds available for emergency repayment
Troubleshooting
"Insufficient Collateral"
Supply more assets first
Enable assets as collateral
Check borrowing capacity
"No Liquidity Available"
Asset fully utilized
Try smaller amount
Wait for repayments
Choose different asset
"Transaction Failed"
Increase gas limit
Check Health Factor
Verify collateral enabled
Reduce borrow amount
"Health Factor Too Low"
Can't borrow more
Add collateral first
Or repay existing loans
"Stock Token Specific Issues"
Check market hours
Verify price oracle status
Consider stock-related news impact
Contact support team
Practical Tools and Monitoring
Dashboard Features
Real-time Health Factor: Continuous liquidation risk monitoring
Interest Tracker: View accumulated interest costs
Price Alerts: Set notifications for critical price levels
Position Overview: Unified view of all borrowing positions
Mobile Monitoring
Set push notifications
Mobile-friendly dashboard
Quick emergency actions
Offline price tracking
Next Steps
Managing your loan: Monitor Health Factor as explained above
Repaying: Repaying Loans
Avoiding liquidation: Liquidation Guide
Understanding risks: Risk Management
Need Help?
Community: Visit our forums
Support: support@blockstreet.money
FAQ: Common Questions
Remember: All loans are over-collateralized and subject to liquidation if Health Factor < 1.0. Borrow responsibly.
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