💼Borrowing Assets

Users can borrow asset tokens from a pair by supplying the necessary amount of collateral tokens. Interest on the borrowed amount accrues over the duration of the loan, incrementally increasing the total amount owed. To reclaim their collateral, borrowers must settle the loan in full, repaying the original loan amount plus the accrued interest.

Unlike other protocols which issue deposit receipt tokens (eg. Compound’s c-tokens), Echelon manages deposit receipts within the smart contract which reduces complexity and vulnerability.

Borrow APR indicates how much yearly interest you will have to pay on your debt.