How to use Stacks market to borrow assets

Go to app.zestprotocol.com and connect a Stacks wallet.

Supplying collateral

Before you can borrow, you need to supply an asset as collateral. Look for an asset under 'Assets to Supply' that can be collateral and press 'Supply'.

Once your supply transaction confirms, you should have a supply balance under 'Your supplies' with the collateral switch enabled.

Is your collateral switch disabled? Just flick it to enable collateral.

Borrowing against your collateral

Once you have supplied collateral, 'Borrow' actions will enable in the UI. Press 'Borrow' on an asset you'd like to borrow.

In the modal, you will see how much you can borrow and what your liquidation price is. The liquidation price is the collateral asset price at which your collateral will get liquidated. If you get liquidated, you get to keep the asset you borrowed but you lose (potentially all of) your collateral.

When you have opened a loan, interest automatically accrues to your debt in the UI.

Repaying your loan

Once you have an open loan, you can repay it totally or partially by pressing 'Repay'. By partially repaying, you reduce your risk of liquidation. To see your new liquidation price for a repay amount, input a value in the repay input field.

Topping up collateral

Once you have an open loan, you can add additional collateral to reduce your risk of liquidation. To add additional collateral, supply more of an asset you have enabled as collateral under 'Assets to supply'. The modal will show your new liquidation price.

What happens when I get liquidated?

When your collateral asset hits liquidation price, your collateral will be programmatically put up for auction. Liquidators bit on your collateral. Liquidators collect a 10% premium on collateral they buy. In effect Liquidators repay your loan and keep the protocol solvent.

If any collateral remains after your loan is liquidated, you will find it under your supply balance under 'Assets to supply'.