Borrow GARD
Step 1: How to Supply Assets
Supplying assets into smart-contract accounts connected to the protocol is the lifeblood of GARD. In order for GARD to come into existence, there must first be ample collateral behind it to ensure that it remains over-collateralized and that there is incentive for the community to keep the value of GARD pegged to 1 USD.
To supply ALGOs or gALGOs a user starts by going to the "borrow" page and entering how much of whichever asset the wish to deposit. Once a user has decided how much collateral they'd like to supply they will see how much GARD they'll be eligible to borrow and must borrow at least one GARD to begin as demonstrated below:
If you're interested in using your CDP to participate in governance click here to learn more about the different ways you can commit.
Step 2: How to borrow GARD
Once a user has borrowed GARD, they must ensure that the value of the GARD they must repay to the protocol does not exceed 115% the value of their collateral. Over time as a user accrues interest the amount of GARD they owe will increase while the value of their collateral may increase or decrease. As a result of this it's encouraged that users over-collateralize their assets adequately and monitor their vaults' health as displayed below:
As long as the value of the collateral in one's vault remains above 115% of the GARD minted a user doesn't need to worry about losing their collateral or being liquidated to protect the value of GARD and the protocol.
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