Here is a step by step guide on using StellaSwap's lending facility powered by QiDao Protocol, this guide will take you through locking in collateral and borrowing MAI stablecoin
Note: Borrowing against collateral may lead to liquidation and is risky, make sure to read the full docs and DYOR to avoid losing your assets.
Choose which asset you would like to deposit as a collateral. In order to lock in your asset in the smart contract and borrow MAI for a portion of your assets value.
Once you have chosen the asset and posses it in your wallet, click on
Create Vaultto begin the borrowing process, you will only need to create vault once.
Note: Borrowing against collateral can lead to (liquidation): your deposited assets being sold to pay back your loan if your assets value drop to liquidation price.
Approve MetaMask message to confirm creating vault.
Make sure you are on Deposit tab and enter the amount of collateral you would like to deposit. This will determine how much MAI you can borrow as the maximum is 40% of your deposited asset value.
Approveto continue, and confirm the pop-up MetaMask transaction.
Once contract approval transaction is done, you can deposit your collateral by clicking
After depositing collateral you will be able to see it in vault info, on this page you will also be able to see how much MAI you are able to Mint (borrow).
Head to Borrow tab in vault, and input your desired amount to borrow.
Note: borrowing an amount closer to the max available to borrow is risky when it comes to volatile assets and may lead to liquidation if the asset value reaches liquidation price
After inputting the amount, Click
Approve, confirm MetaMask message and click
Borrow MAIonce its done.
You have successfully borrowed MAI and can find it in your wallet. You can now trade, farm or transfer MAI as you would any other stablecoin.
Don't forget to maintain your loan to avoid liquidation, keep an eye on the estimated liquidation price for your collateral and either pay back loan or lock in more collateral to keep a healthy rate.