Torque Is Live: A Step-By-Step Guide To The Most Powerful Decentralized Borrowing Platform on Ethereum

Kyle J Kistner
Oct 28, 2019 · 4 min read
Image for post
Image for post

Torque is a non-custodial platform for fixed rate, indefinite-term cryptocurrency loans. It allows you to borrow against your current assets in as little as a single transaction. Torque’s unique architecture allows for the lowest liquidation prices while avoiding the significant margin call penalties of existing borrowing platforms. Torque promises the sort of streamlined, simple user experience required for mass adoption.

Get started with Torque now.

Watch Torque In Action

A Video Demonstration of Using an External Wallet To Borrow DAI
Image for post
Image for post

Step-by-Step Guide

Browser Wallets

Using browser wallets such as Metamask, Dapper, Nifty, & others, you can easily take out loans using your ETH or existing ERC20 holdings as collateral. You can also use wallets such as Formatic, Portis, and Squarelink.

Image for post
Image for post

Step 1

Select the asset you want to borrow.

Image for post
Image for post

Step 2

Enter the quantity of the asset you want to borrow.

Image for post
Image for post

Optional: Step 3

Select your collateral.

Image for post
Image for post

Step 4

Hit Submit and accept the transaction.

Image for post
Image for post

That’s it!

External Wallets

You can use any external wallet. Examples include MyCrypto and MyEtherWallet.

Image for post
Image for post

Step 1

Select the asset you want to borrow.

Image for post
Image for post

Step 2

Enter the amount you want to borrow.

Image for post
Image for post

Step 3

Enter the address (e.g., dai.tokenloan.eth) and the quantity of ETH indicating on the form.

Image for post
Image for post

Step 4 (Optional)

It can be a good idea to select the advanced options and set the gas limit to a high quantity like 2,500,000 to make sure the transaction doesn’t run out of gas.

Image for post
Image for post

Step 5

Submit the transaction!

Parameter Changes

We’ve thought long and hard about how to best serve borrowers while also protecting lenders from defaults. We’ve slightly modified some of the initial margin and margin maintenance parameters of borrowing.

The following are the new initial margin and margin maintenance numbers:

Image for post
Image for post

The Future of Torque

Currently Torque allows for loans to be indefinite* term and at a fixed rate. It can be difficult for a system to sustain both these features at the same time, and we believe that it is possible that we may need to seek trade-offs around this if market rates were to change dramatically. We have implemented a system where if there becomes a lack of lending liquidity, and lenders seek to exit the pool, a queue forms, allowing the first lenders to enter the queue to exit as new lending liquidity enters.

It has not yet been the case that a queue has formed to exit the lending pool. *However, if one were to form, this would initiate a process causing the borrower paying the lowest interest rate to transition their loan from indefinite term to three months. If at some point lending liquidity enters, this process reverses, allowing the loan to revert back to its indefinite term form.

One of the upcoming features of Torque we’re excited about is the integration of 0x v3.0. This newest version of 0x allows for the creation of decentralized limit orders, which can be automatically implemented for borrowers to further protect them from margin calls. In addition to not receiving any penalties on margin calls, borrowers can avoid slippage as well.

Visit Torque now.

Image for post
Image for post

To learn more about Fulcrum, Torque, or bZx:
Documentation
Github
Technical Community
Telegram.

bZxNetwork

The first decentralized margin lending and margin trading…

Kyle J Kistner

Written by

CVO @ bZx. Product, Protocol Design, & Token Economics.

bZxNetwork

The first decentralized margin lending and margin trading protocol on the Ethereum blockchain. bZx is an open protocol for developers to build their own dApps.

Kyle J Kistner

Written by

CVO @ bZx. Product, Protocol Design, & Token Economics.

bZxNetwork

The first decentralized margin lending and margin trading protocol on the Ethereum blockchain. bZx is an open protocol for developers to build their own dApps.

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store