Borrow (Sell & Ask)

How to Borrow

1. After navigating to the 'Sell Bonds' page, the user needs to decide which collateral asset they will borrow against.

2. The user then needs to make a decision

   1. Borrow immediately on the Spot Market by pressing 'Sell', or

   2. Placing an 'Ask' (Limit) Order at their desired price and wait to be filled

Borrow against ETH, wBTC, & AMPL at app.zero.button.finance

Selling on Spot Market (Option #1):

3. The next step is to configure the loan by inputting the desired borrow and collateral amount.

The borrowing fee is the interest rate that borrowers pay to obtain the loan. The interest rate varies dependent on the amount of collateral users deposit and the amount of cash users want to borrow.

4. After selecting the amount to borrow and collateral to deposit, users are asked to confirm the transaction:

Users' supported wallet will pop up asking for one more confirmation to finish the transaction.

Once that transaction confirms, the loan has been created! The user’s wallet should indicate an increase in USDT balance along with Tranche tokens. USDT balance should indicate increased by their requested value.

Placing an Ask Order (Option #2):

3. Alternatively, borrowers can place an 'Ask' Order. This functions like a limit order.

4. Borrowers then deposit a certain amount of collateral

5. Borrowers can adjust their Ask range for each tranche.

6. The next step is to review the order and make confirm

7. The last step is to confirm transactions with your wallet. As described in the documentation, borrowers tranche their collateral which gets split between A, B, and Z tranches. The tranche tokens are then exchanged for USDT.

• Borrow Term: The first bonds are going to be issued with a six or twelve month duration. After this period is over, the borrower should come back to the app to repay their loan and get their collateral back - they also benefit from any positive price movements to the underlying collateral during the duration of the loan (i.e. if ETH went up over the course of the 354 days).

• Collateral Amount: The user can choose to provide collateral in one of the following: ETH, wBTC, and AMPL. A higher amount of collateral provided will result in a lower interest rate.

You can find a video version of this demo here

Note: This demo is outdated and was made for a previous iteration. We will provide a more updated video in due time.