User borrows the specified amount of borrow assets from the vault and receives borrowTokens in exchange to represent their debt.

borrow(uint256 amount)

  • amount - the amount the user wants to borrow

Upon receiving a request for a borrow the vault will check how this request would affect the users position and if within specified margins will borrow the required amount from the active lending provider.

borrowToken A borrow token is issued to represent the debt owed by the user. This is an interest bearing token and therefore the users debt can go up over time, where this increase will be in line with interest charged on our lender debt.

When calling the balanceOf function on a borrow token any loan reductions will be calculated also.

As debt is non-transferrable, borrow tokens can not be transferred to other users.

Thresholds There are several thresholds that impact the user position:

supplyThreshold → users can actively borrow and withdraw but their loan-to-value should stay below this value

liquidationThreshold → the user position can be liquidated if their loan-to-value is higher than this value

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