Before borrowing you need to pledge assets. After this, simply head to the “Issue Bonds” section. Choose the currency, term and enter the amount of bonds. Submit the transaction by click on “Confirm”.
The maximum amount you can borrow depends on the value of your collateral and the available liquidity. The maximum LTV ratio is 80%, which means the amount of your loan shouldn’t exceed 80% of the value of your collateral. If there isn’t enough liquidity, you can’t borrow an asset.
The bond issue fee is 0.2% of the total bonds issued, which is calculated at face value of the bonds. You pay the issue fee with the same currency as the bonds. For example, the bond issuance fee is paid in Algo for Algo bonds.
You could pledge with LP Tokens from Uniswap V2, including DAI/ETH, ETH/USDT, USDC/ETH and take a loan with corresponding currencies. For example, with DAI/ETH as collateral, you could either borrow DAI, ETH, or DAI compounded with ETH, as long as the total number of borrowing asset doesn’t exceed the maximum LTV ratio.
You repay your loan in the same asset you borrowed. For instance, if you borrow 1DAI you will repay 1 DAI. Your interest is paid at the beginning of the transaction.
There are 6 different term lengths to choose from : 5 days, 10 days, 15 days, 30 days 45 days and 60 days.
If the assets decreases significantly in value and you do not contribute additional assets to your Hipo account, your loan may exceed the maximum LTV ratio and trigger liquidation. You could either add collateral or redeem part of the loan.