💹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.

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.

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.

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.

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.

✅ Key Takeaway

• 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.