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Borrowers
Borrowers can deposit any listed collateral assets and borrow USDC down to a health factor of 1. Each listed asset (see Asset Listings) has a specified Loan-to-Value (LTV) ratio. For a collateral asset with a 85% LTV, you can borrow up to $0.85 for each $1 in that asset deposited.
Borrowers are paying a floating interest rate, derived from a combination of current liquidity utilization and a configurable interest rate curve.

Depositing Collateral

  • Navigate to the Borrowers tab in the Lending section on xtoken.market
  • Click the Deposit button
  • Select the asset you want to deposit
  • Approve that asset

Borrowing

You'll need to deposit collateral (instructions above) before being able to borrow.
  • Navigate to the Borrowers tab in the Lending section on xtoken.market
  • Click the Borrow button
  • Input a USDC amount to borrow
  • Submit borrow transaction
As a borrower, it's important to monitor your health factor. A health factor under 1 puts you at risk of liquidation. We recommend maintaining a health ratio above 1.5 and continuously monitoring your position. If the value of your collateral declines, you will need to deposit more collateral or repay debt in order to avoid liquidation.
You cannot borrow an amount that puts your health factor below 1.05.

Removing Collateral

  • Navigate to the Borrowers tab in the Lending section on xtoken.market
  • Click the Withdraw button
  • Select the asset you'd like to withdraw and enter amount
  • Submit withdraw transaction
You will not be able to withdraw collateral if the withdrawal amount reduces your health factor below 1.

Minimum Borrow Amount

In order to maintain a healthy lending protocol, we need to ensure that no loans remain undercollateralized. Even on L2, there is a gas cost to liquidating an underwater loan. For this reason, xLend has a minimum borrow amount of $200. In addition, you may not repay a loan if the post-payment debt value will be under $200. In this case, you must pay back the whole loan.

Liquidation Logic

If your health factor falls below 1, you will be exposed to liquidation. Liquidators can liquidate you up to a health factor of 1.2, meaning you will maintain most of your collateral post-liquidation.

Liquidation Penalty

xToken Lending has a liquidation penalty of 10%. This is an incentive to maintain your health factor above 1.
Last modified 1d ago