This page will give you a better understanding of borrowings at WENWEN Protocol.
WENWEN Protocol allows users to borrow USD pegged stablecoin – WEN against Crypto-assets (basic assets and ibTKNs) used as collaterals.
To borrow WEN, users need to deposit their collateral assets to open a position. A position is where a borrower takes out and maintains the loan. Positions are inherently non-custodial. Borrowers have complete control over their positions as long as the collateral value doesn’t fall to or below the liquidation price. The borrower can remove the collateral assets deposited or add more collateral in position at any time. However, borrowers need to keep the collateral value above the liquidation price to avoid liquidation.
All approved collateral assets can be leveraged to borrow WEN. Currently, users can use STC as collateral, and more collateral assets will be approved soon. Users can access the WENWEN Protocol and create a position through the WENWEN borrow page.
Visit WENWEN Protocol, click on Borrow
The borrow page shows the approved collateral assets and borrowing information
Across the top, you will be able to see ( Using STC as an example):
- Total WEN Borrowed: This shows the amount of WEN that has been borrowed by depositing STC
- WEN Left To Borrow: This shows the amount of WEN that are available to borrow by depositing STC
- Interest Rate: This shows the annualized borrowing interest rate of WEN by depositing STC
- Liquidation Fee: This shows the discount a liquidator will get when liquidating a position that has been flagged for liquidation
To borrow some WEN, click on the asset that you would like to use as collateral
You will be redirected to the Borrow and Repay Page
Enter the amount of collateral you would like to deposit and the amount of WEN you would like to borrow
Across the bottom, you will be able to see:
- WEN Amount: This shows the amount of WEN you will borrow (Including the amount of WEN you have borrowed by the same collateral asset)
- Expected Liquidation Price: This shows the price of the collateral asset that will trigger liquidation. For example: when STC's price falls to or below $0.0473, this position will be liquidated. You can read more about WENWEN Protocol's Liquidation here
- Position Health: This indicator shows the safety of the position, you can decide whether the position setting suits your risk appetite
On the right of the Borrow and Repay page, you will be able to see the information about your open position. Every time you adjust your position (add/remove collateral or borrow/repay WEN), these parameters will adjust accordingly.
You will be able to see information about your open position:
- Collateral Deposited: This shows the amount of collateral asset you have deposited in this position
- Collateral Value: This shows the total value in USD of the collateral asset that you have supplied to this position
- WEN Borrowed: This shows the total value and quantity of WEN you have borrowed. WENWEN Protocol always considers 1 WEN to equal 1 USD
- Liquidation Price: This shows the price of the collateral asset that will trigger liquidation
- WEN Left To Borrow: This shows the amount of WEN you can still borrow. To adjust this amount you can either add more collateral or repay your debt
- 1 WEN = 1 USD: This shows that WENWEN Protocol always considers 1 WEN to equal 1 USD
- 1 STC = 0.0982 WEN: This shows the current price of the collateral asset. If the current price is equal to or below the liquidation price, this position will be liquidated.
On the bottom left side, you will be able to see the balance of your wallet
On the bottom right side, you will be able to see the static parameters of this collateral asset pool.
These parameters will remain constant unless modified by governance:
- Maximum Collateral Ratio: This shows the maximum amount of debt a borrower can borrow with the selected collateral asset
- Borrow Fee: This shows the fee charged to borrowers for borrowing WEN with the selected collateral asset
- Interest Rate: This shows the annualized borrowing interest rate of WEN by depositing the selected collateral asset
- Liquidation Fee: This shows the discount a liquidator will get when liquidating a position in this collateral asset pool that has been flagged for liquidation
Borrowing WEN creates an obligation for the borrower to repay the principal along with the interest fee accrued. In return, the borrower can withdraw the collateral asset deposited in the position. WENWEN Protocol doesn’t require borrowers to have a repayment schedule. However, it is the borrower’s responsibility to manage the position to avoid liquidation. Users can choose to repay their debt fully or partially and add more collateral to borrow more WEN or prevent liquidation.
To repay the WEN debt, click on Repay
Enter the amount of WEN you would like to repay and the amount of collateral asset that you would like to remove
Please note that once you choose to repay your debt and remove your collateral asset, your liquidation price and position health will change accordingly.