Borrowing
Last updated
Last updated
Borrowing on AlphBanX is a straightforward process designed to provide liquidity while ensuring the stability of the ecosystem. Here’s how you can do it:
Deposit alph as collateral: This collateral serves as a security measure, ensuring that the value of the loan is backed by sufficient assets.
Mint ABD Stablecoins and set own interest rate: Once your collateral is deposited, you can choose your own interest rate and mint ABD stablecoins. The platform requires you to maintain a minimum collateralization ratio of 150%, meaning your collateral must be worth at least 150% of the loan amount.
Receive ABD Tokens: After the loan information is recorded, the ABD tokens are sent directly to your wallet. You can then use these stablecoins for various purposes within the ecosystem or externally.
Interest Rate: AlphBanX offers users the flexibility to set their own interest rate, with 8 tiers to choose from: 1%, 3%, 5%, 10%, 15%, 20%, 25%, and 30%. As AlphBanX operates as a hybrid system combining crypto-backed and collateralized stablecoins, users can always redeem 1 ABD for $1 worth of Alph. During redemptions, loans with the lowest Interest Rate are prioritized for repayment. Higher interest rate loans are more beneficial to both ABX and ABD holders, as they generate more interest revenue. Therefore, lower interest rate loans, being less profitable, are redeemed first.
Loan Management: You can manage your loans through the platform's user-friendly interface. This includes monitoring your collateralization ratio and adjusting your collateral or loan amount as needed.
Increment Loans: If you need to increase your loan, you can do so by depositing more Alph tokens as collateral or minting additional ABD stablecoins. This flexibility allows you to adapt your loan to changing needs and circumstances.
Maintain Collateral Ratio: It’s crucial to maintain healthy collateralization ratios to avoid liquidation. You can increase your collateral at any time to ensure that your loan remains secure.
Repayment: You can repay your loans partially or in full at any time. This flexibility allows you to manage your debt efficiently, reducing your exposure to fees and potential liquidation risks.
By following these steps, you can effectively utilize AlphBanX to access stablecoin liquidity, leveraging your ALPH tokens while maintaining the security and stability of your assets.
