How to take a loan on Sovryn | Scribe

    How to take a loan on Sovryn

    • Art of Tomas |
    • 21 steps |
    • 4 minutes
    1
    First navigate to [https://alpha.sovryn.app/](https://alpha.sovryn.app/) and click "Borrow" on the top menu.
    2
    There are many assets you can chose from. for this tutorial we will borrow some RBTC using DoC as collateral. The process is the same for each asset.
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    Tip! The Borrow APY is the amount you would pay if you had the loan open for an entire year.
    3
    Select the Asset you want to Borrow. For this example we will choose BTC.
    4
    Click here to open the menu and select the collateral you want to deposit.
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    Tip! All loans in Sovryn are over-collateralized. Meaning you need to deposit more than what you take out. For all tokens the rate is 150% + interest for the first 28 days. If you choose the SOV as collateral then it would be 300% + interest. When you pay off the loan you get the collateral back.
    5
    For this example we will use "DoC" (a stablecoin collateralized with BTC).
    6
    Enter the amount you would like to borrow.
    7
    The required collateral is calculated instantly for you. Once ready click "Borrow RBTC".
    8
    Confirm transaction in your wallet.
    9
    We can see our transaction now in "Pending"
    10
    After a little bit we will get the approved message.
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    That's it! Now in our wallet we will find the assets we just borrowed!
    11
    In the bottom of the screen we can see our loan with all the relevant information. Like the APY we paid and we can see up to what day we paid the interest.
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    Tip! If we repay and close our loan before it's expiry date we will get back the interests of the days leftover on it.
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    Tip! If we don't pay the loan before it's due date it will roll over for 28 more days, this would incur more fees and reduce our collateral ratio (which started at 150%)
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    Alert! if our collateral ratio would ever drop below 115% our loan would suffer a "partial liquidation" selling off our collateral to bring the ration back above 115%. Keep a close eye on your loan and avoid this happening to you.
    12
    If need be we can always click "Add collateral" to strengthen our loan.
    13
    In the menu it pops up we can see exactly our liquidation price and collateral ratio.
    14
    Adding more collateral is as simply as clicking a % or typing a number.