Borrowers
Borrowing on Panoptic lets you tap into lender-supplied liquidity to withdraw funds, loop positions, or trade options with leverage. Rates adjust automatically based on pool utilization, so borrowing costs respond to real-time demand.
Why Borrow on Panoptic?
- Flexible Capital: Borrow to access liquidity without selling your assets.
- Leverage & Looping: Borrow to increase exposure or build looping positions.
- Options Trading: Borrowing is integrated with option margin accounts on Panoptic
- Transparent Rates: Borrow rates rise and fall with utilization, aligning cost with supply and demand.
How Borrowing Works
- Liquidity Comes From Lenders: Lenders deposit tokens into vaults or lending markets.
- Borrowing Increases Utilization: When users borrow, pool utilization and interest rates increase.
- Interest Accrues Over Time: Interest is accrued on a user’s net amount of borrowed funds and distributed to lenders.
Getting Started
1. Choose a Market
Head to our app and pick the token you want to borrow and the market you want to borrow from (e.g., ETH/USDC).
2. Add Collateral
Before borrowing, you’ll need to deposit collateral..
- More collateral enables more borrowing capacity.
- Your collateral also helps keep your positions solvent under price moves.
3. Borrow Funds
Enter the amount you want to borrow, review the current borrow rate, then confirm the transaction.
Borrowed funds can typically be used to:
- Withdraw (move borrowed tokens to your wallet)
- Loop (borrow → swap → deposit → borrow again)
- Trade options on margin
4. Monitor Health & Costs
After borrowing, keep an eye on:
- Utilization & Interest Rate: Rates change as the pool fills or empties.
- Collateral Health: If your position becomes undercollateralized, it may be eligible for liquidation.
5. Repay Anytime
You can repay partially or fully to reduce interest costs and improve your collateral health.