Just like other decentralised liquidity protocols, borrowers put down collateral, prior to borrowing funds. With DeltaPrime however, you can borrow up to 5 times the amount of your collateral. This is what makes DeltaPrime undercollateralized and in turn capital efficient. Since you can invest your collateral together with your borrows, you unlock the full power of your capital.

How to borrow

Borrowing from the liquidity pool is easy. Press the + button under "Loan" in your Prime Account to make the borrowing page appear. You can directly enter the amount of AVAX you want to borrow, or make use of the LTV slider to adjust your risk. When borrowing funds, stay aware of your LTV. To prevent immediate liquidation you can increase your LTV to a maximum of 450% (22.2% CR) for the borrow. Afterwards your LTV can rise up to 500% before liquidation.