One-Click Borrowing Now Available!
In the previous article ‘iGain IRS — User Guide’, we had mentioned the solution to lend at fixed APY in one click. This service empowers users to make stablecoin deposits on Aave and buy a corresponding amount of Short tokens in just one transaction. This process is done via Proxy smart contracts linking iGain IRS and DeFi platforms (Aave, etc). It is one of the most effective and efficient approaches to achieve cross-protocol fixed-rate deposits.
Until now, only lending was available this way.
We are excited to announce that iGain IRS can provide a one-click solution to borrow at Fixed APY!
- Deposit collateral on Aave
- Go to the one-click borrowing section of iGain IRS
- Adjust the bar (see below) or enter an amount to determine the borrowing amount on iGain interface (the Maximum number is decided by the collateral value and the amount of LTV)
- The level of risk will be assessed by the system*, and calculate the amount of purchased Long tokens
- Click on “Confirm” after checking purchase costs, receivable amounts, fixed APY and the maturity
This transaction will be done with Proxy smart contracts. Users can thus complete Steps 2 to 4 in just one single transaction. This way, there’s no need to do any extra calculation and constantly switch between two protocols!
Note: The loan from Aave is partially used for buying Long tokens and protects your borrowing costs. As a consequence, the actual available capital is likely to be smaller than the borrowing amount. For more details, please read more in our whitepaper.
Now, try it yourself!
* Notably, although Long tokens can hedge against the value change in loan position, these two are independent and disconnected positions. Hence, if the value of the collateral goes down or the borrowing rate surges, users still face the risks of forced liquidation. Please note the collateral rate and potential margin calls.