Skip to main content
A collateral loan lets you get liquidity without selling what you hold. You deposit an asset as collateral, for example ETH, and borrow another asset against it, for example USDC. As long as your collateral stays above the required level, you can keep the loan open for as long as you like.

​
Why borrow

  • Keep your exposure. Get stablecoins for spending or trading while staying exposed to your ETH, SOL or BTC.
  • Avoid a taxable sale, in jurisdictions where selling would be one.
  • Leverage. Borrow stablecoins, buy more of the collateral asset, and increase your exposure. This also increases your risk.

​
Key terms

​
Borrow

1

Open Collateral Loans

Go to Earn → Lend and open the Collateral Loans tab.
2

Choose a market

Pick the pair of collateral and borrow asset. Compare the borrow APY, max LTV and liquidation threshold.
3

Deposit collateral

Enter the amount of collateral and confirm.
4

Choose how much to borrow

Enter an amount, or use the slider. DYXY updates your LTV, health factor and liquidation price as you move it.
5

Confirm

Sign the transaction. The borrowed asset arrives in your wallet.

​
Example

You deposit 5 ETH at $4,000, so $20,000 of collateral. The market has an 80% max LTV and an 85% liquidation threshold. Borrowing at the maximum leaves only a 6% drop before liquidation. A conservative LTV gives your loan room to survive normal volatility.

​
Repay and withdraw

  • Repay part or all of the debt at any time. There is no fixed term and no early repayment fee. Interest keeps accruing until you repay.
  • Withdraw collateral after repaying, or partially while the loan is open, as long as your health factor stays above 1.
Your debt grows with interest even when prices don’t move. A loan left untouched for a long time slowly drifts toward the liquidation threshold.