Borrow
Last updated
Last updated
To borrow MIM using our Abracadabra technology, go to and launch the app. This will take you to our community and maintained interface pages.
On this landing page, you can see all of the available cauldrons (markets). Users can search, filter and sort a cauldron of their choosing by chain, by MIM availability, by APR or TVL.
Once the cauldron(s) are selected, the cauldron's page will open, exhibiting market-specifc information and allowing you to borrow MIM.
The Cauldron page contains several parts, with the top layer giving us information about the market we've selected (here it's wAVAX).
This enables the user to switch between Borrow mode and Repay mode.
This user can select how much collateral they want to deposit Some cauldrons can accept the collateral in their wrapped (wAVAX) or naked (AVAX) versions. A switch enables you to go between the 2.
This pane shows how steps 2 and 3 will impact your position, showing the amount and value of the collateral deposited. It also shows the MIM that has to be repayed to fully exit the position and the .
This pane gives information about the cauldron itself, including fees, risk parameters and MIM available. You can't borrow more MIM than what is available.
Once you have selected your parameters, the middle pane will show you what your borrow position will look like, after the transaction is successfully completed.
Collateral Deposited: Amount of collateral into the position and its USD value.
MIM to Repay: Total amount of MIM that will be owed after the position is opened. (it includes the Mint Fee)
Liquidation Price: Collateral price at which your borrow position will be liquidated.
Current Price: Current value of one unit of Collateral.
When you are finally ready to open a position, simply click on the "Add collateral and borrow" button.
Note that if this is your first time using Abracadabra, you may need to grant several approvals before you can open the position.
The final transaction will deposit the collateral into the Cauldron, borrow MIM and deposit them into your wallet. If you can't see MIM in your wallet, you can clic on the MIM logo in the top right corner of the page or refer to your wallet's own documentation.
Once the transaction is confirmed, the page will refresh to show the updated values.
In order to close your position, head over to the My Positions page, and click on the Manage button. This will bring you back to the Cauldron Page.
From there, clic on the Repay button to switch to repay mode.
The Repay interface enables the user to select how much MIM to be repayed, how much collateral is removed, and the effect it would have on the health of the position.
If this is your first time using the platform, you'll need to approve the use of MIM by DegenBox before using the Remove and Repay button.
Because of the way cauldrons work, some dust may stay in the cauldron (which is why the interface is allowing me to remove 0.4999… instead of 0.5)
Users can select how much MIM you want to borrow. The selection bar shows you the (Loan to Value)% you would have given the borrowed amount. It also shows the cauldron's (Minimum Collaterized Ratio). As the borrowed amount becomes closer to the MCR, the position becomes riskier and there is a greater risk for liquidation. In this example, we're not using leverage, so we leave this unchecked. .
The liquidation price that is shown will always refer to the collateral that has been deposited to borrow MIM. A liquidation price of $26.8 means that if the price of AVAX drops to $26.8, your position is at risk of being liquidated. Please refer to the "" section of the docs to learn more.
In this example, we selected the maximum amount of MIM to repay the debt fully, and removed the maximum amount of wAVAX. It will take the MIM from your wallet and repay your debt, make sure to have enough MIM before starting this process. We did not use the "Deleverage" option in this scenario. To learn more about it, go to the .
