> For the complete documentation index, see [llms.txt](https://docs.friendly.market/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.friendly.market/products-1/borrowing-assets.md).

# Borrowing Assets

Borrowing allows you to **take out a loan** by locking your supplied tokens as collateral. You can borrow from:

1. **Native Pools (on Nibiru)** → Loans against Nibiru-native collateral like NIBI.
2. **Cross-Chain Compound Pools** → Loans from Compound on Ethereum and Base, using LayerZero + Stargate to bridge collateral automatically.

#### Why it matters

* Access liquidity **without selling** your tokens.
* Use leverage to increase your positions.
* Borrow stablecoins (e.g., USDC) or ETH to diversify your portfolio.
* Stay on Nibiru while interacting with Ethereum/Base markets.

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### How to Borrow

1. Go to the **Supply & Borrow** tab.
2. Click **Borrow** under Asset Management.
3. Choose the asset you want to borrow.
4. Select which collateral to use (e.g., WETH).
5. Enter the **amount to borrow** (limited by your borrow capacity).
6. Confirm the transaction:
   * **Native  pool** → loan issued directly on Nibiru.
   * **Cross-chain Compound pool** → your collateral is bridged to Base/Ethereum, loan is issued there and your borrowed tokens are bridged over to Nibiru and sent to your wallet. 
7. Your borrowed balance will appear in **My Position**.

<figure><img src="/files/xCvWEKyLprXVLxAg9bys" alt=""><figcaption></figcaption></figure>

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### Borrow Panel (Left Side)

* **Collateral Value** → Value of your supplied assets available as collateral.
* **Current Borrowed** → How much you’ve already borrowed.
* **Borrow Capacity** → Maximum amount you can borrow based on your collateral factor.
* **Available to Borrow** → Remaining borrowable balance.

<figure><img src="/files/nNhA2QrFmb6zQTfnx4Yc" alt=""><figcaption></figcaption></figure>

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### Cross-Chain Collateral Supply

If you’re borrowing from **Compound on Base/Ethereum**, your collateral will be **bridged automatically** from Nibiru to Compound. This process takes **2–5 minutes**.

* Example: Supply WETH on Nibiru → It gets bridged and posted as collateral on Compound Base → You can borrow USDC or ETH.

<figure><img src="/files/P48lt77Ankq3Qcw8GNvb" alt=""><figcaption></figcaption></figure>

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### Interest Rate Model & Utilization (Right Panel)

* **Total Supply** = liquidity available.
* **Total Borrow** = amount currently borrowed.
* **Available Liquidity** = borrowable funds still left.
* **Interest Rate Chart** =
  * Borrow APR = cost for borrowers.
  * Supply APR = earnings for suppliers.
* **Utilization** = percentage of liquidity borrowed.
  * High utilization = higher borrow rates.
  * Low utilization = cheaper borrowing.

<figure><img src="/files/ASpz2p15OYujkpv7gol9" alt=""><figcaption></figcaption></figure>

***

## ✅ Key Takeaway&#x20;

* Borrowing lets you access liquidity without selling your collateral.
* You can borrow **natively on Nibiru** or **cross-chain via Compound**.
* Always watch your **borrow limit** and **collateral factor** — if your collateral value falls, you risk liquidation.