Curvance
Search…
Borrowing
After depositing to Curvance, you have the ability to borrow stablecoins. You can borrow against your deposited assets and use them as collateral. Curvance provides a solution for users who have locked their capital to earn and boost their yields on platforms like Curve, Yearn, or Convex. Users now have the opportunity to unlock a portion of their staked capital to be used on other decentralized financial applications. There are many reasons why users may want to do this. Perhaps you would like to use your unlocked capital to reinvest and earn additional yield, further boosting your boosted rewards. Maybe you'd like to take out money to use and spend without selling your appreciating, yield-bearing assets. Or reinvest borrowed capital to buy more staked assets and depositing them back into the protocol, effectively leveraging your position. Regardless of your use case, Curvance opens the door to a wide range of new possibilities and strategies for you to take advantage of.

What determines my borrowing interest rates?

The mechanics for calculating borrowing interest rates for the available assets are essentially the same as outlined in the Lending section.
TLDR: The borrowing interest rates are based on the interest rate curve and utilization of the pool. The borrowing interest rate hikes after 80% utilization of the pool.
NOTE: The borrowing interest rate for a pool is always flat (APR).

What determines my borrowing limit?

Borrowers must over collateralize their assets when borrowing to ensure the borrowed assets are returned. The Loan to Value ratio (LTV) of the particular assets you are supplying determines the maximum amount of tokens in the pool that can be borrowed through the protocol. Let's say you are supplying yvBOOST to a pool, which has an LTV of 85%. For every 1 yvBOOST you deposit as a lender, you are allowed to borrow 0.85 yvBOOST worth of stablecoins in the pool. These stablecoins are now yours to spend as you please.
Besides that, pool utilization is a limiting factor of your borrowing limit. If all of the pool is being utilized, you can not borrow more.

What are the risks?

If the price of a user’s collateral decreases to below the collateral amount * LTV, their position will be subject to liquidation. If this happens, supplied collateral will be sold to repay enough of their loan until the borrowed amount no longer exceeds the borrowing limit. As with nearly all assets in DeFi, users should expect and prepare for volatility. This makes it important to carefully monitor one’s health bar and borrow carefully within the borrow limit.

Liquidations

The underlying pools do not run automated liquidations. Instead, the system is based on a thriving community of liquidators who are incentivized by receiving part of the collateral.
NOTE: Please be aware of the fact that an account can not only go underwater by the collateral's value decreasing more than the value of the borrowed asset, but also by the borrowed asset's value increasing more than the collateral's.