Glue Lend
Last updated
Last updated
Glue Lend is a decentralized lending protocol where you can supply your crypto assets to earn passive income. Glue Lend connects lenders and borrowers in a trustless environment.
The 'Dashboard' is your go-to for managing your activity on Glue Lend.
Here, you can get a clear overview of:
Supplied Assets: See which assets you've supplied, along with their current value and the interest you're earning.
Borrowed Assets: Track the assets you've borrowed and the total debt you owe, including interest.
Available Assets to Supply: View your wallet's eligible assets that can be supplied to earn yield.
Available Assets to Borrow: Explore the list of assets you can borrow, along with their current borrowing rates.
This page provides all the key details you need to monitor your portfolio and manage your positions.
From the dashboard page, under 'Your supplies', you also have the option to decide whether to use a supplied asset as collateral. An asset used as collateral will affect your borrowing power and health factor.
You can also view the details of your Health factor by clicking on 'RISK DETAILS'
The Markets page provides an overview of all assets available in Glue Lend, along with key metrics to help you make informed decisions. Here's what each column means:
Asset: The cryptocurrency or token available for lending or borrowing.
Total Supplied: The total amount of this asset currently deposited by lenders into the protocol.
Supply APY: The annual percentage yield earned by lenders for supplying this asset.
Total Borrowed: The total amount of this asset currently borrowed by users.
Borrow APY: The annual percentage yield borrowers pay for borrowing this asset.
This page is your go-to for monitoring asset performance and finding opportunities to supply or borrow effectively.
Terms to be aware of:
Max LTV: The Maximum LTV ratio represents the maximum borrowing power of a specific collateral. For example, if a collateral has an LTV of 75%, the user can borrow up to 0.75 worth of ETH in the principal currency for every 1 ETH worth of collateral.
Liquidation Threshold: This represents the threshold at which a borrow position will be considered undercollateralized and subject to liquidation for each collateral. For example, if a collateral has a liquidation threshold of 80%, it means that the position will be liquidated when the debt value is worth 80% of the collateral value.
Liquidation Penalty: When a liquidation occurs, liquidators repay up to 50% of the outstanding borrowed amount on behalf of the borrower. In return, they can buy the collateral at a discount and keep the difference (liquidation penalty) as a bonus.
Health Factor: Safety of your deposited collateral against the borrowed assets and its underlying value.
Let's supply some Ethereum (or ETHg on Glue).
Navigate the list and find Ethereum and on the right hand side, click on 'Details'.
On the right hand side, under 'Your info', click on 'Supply'.
Decide the amount of ETHg to supply. For this guide, 100 ETHg. If this is the first time you are supplying an asset, we first need to approve it. This approval grants Glue smart contracts permissions to move your funds from your wallet.
Click on 'Approve ETHg to continue' and sign the transaction in your wallet.
Once done, you will be presented with the option to 'Supply ETHg'.
Click on 'Supply ETHg' and sign the transaction in your wallet. And that's it. All Done!
Let's borrow some ETHg.
Navigate the list and find Ethereum and on the right hand side, click on 'Details'.
On the right hand side, under 'Your info', click on 'Borrow'.
Under 'Amount', you can decide how much you would like to borrow. The maximum is also indicated. Pay close attention the 'Health factor' as it will help you understand your borrowing limits and risk.
The Health Factor measures the safety of your loan; a higher value means your collateral is secure, while a value below 1.0 puts your loan at risk of liquidation. Borrowing more reduces your Health Factor and increases your Risk Factor, which reflects how much of your borrowing capacity you’re using. It’s crucial to keep your Health Factor well above 1.0 to avoid liquidation, especially as market conditions or collateral values fluctuate. Always borrow within safe limits to manage your risk effectively.
Let's borrow 20 ETHg for the purpose of this guide.
Enter the amount, in this case 20, and click on 'Borrow ETHg' and sign the transaction in your wallet.
And that's it. You have successfully borrowed 20 ETHg.
Under 'Dashboard', you will be able to see 'Your borrows' on the top right hand side.
Click on 'Repay'.
Under 'Transaction Overview,' you can view the details of your debt, helping you decide whether to repay it in full or make a partial repayment.
The calculator is dynamic, for example, out of the 20 ETHg remaining dept, if we enter 5 in the Amount, the Remaining debt will automatically adjust. So does the Health factor.
Let's repay in full.
Click on 'Repay ETHg' and sign the transaction in your wallet.
And that's it.
