Welcome back to our “🧀Where is the Cheese?🧀” series!
As lending protocols are definitely the most requested use case of milkTIA, we are happy to provide another option for our Milkers to lend out their milkTIA — UX, also formerly known as Umee!
For full coverage of the milkTIA use cases, 👉 check out our Discovery page.
Introduction to UX
UX is the most programmable, safety-first lending algorithm built as a blockchain. As a base layer blockchain, applications and money lego primitives can be built on top of UX to access cross chain leverage, liquidity, and debt instruments. The UX chain facilitates interoperability between the Cosmos ecosystem, Ethereum, side chain architectures, layer two scaling solutions, rollups, and alternative base layer protocols.
Check out their documentation site for more detailed information.
Lend on UX
Here’s how you can get started:
- Access UX: First, navigate to UX.
- Connect Your Wallet: Connect your wallet that holds your milkTIA tokens.
- Transfer milkTIA: Under Available Assets, Click on Transfer in the milkTIA row, enter the amount of milkTIA you wish to transfer, and confirm transaction.
- Lend milkTIA: Enter the milkTIA market page, select Supply, enter the amount you wish to lend. Review and confirm.
Borrow on UX
After lending out your tokens as collateral, you can then borrow on UX.
- Borrow: On the market page, select the asset you wish to borrow, select Borrow, and enter the amount.
- Confirmation and Monitoring: Confirm the transaction. Once it’s processed, you will receive borrowed assets to freely use for other DeFi opportunities and you can monitor your position’s health status directly on the Dashboard page.
Risk Parameters
milkTIA has the following risk parameters at launch per #145 Governance Proposal:
“collateral_weight”: “0.680000000000000000”,
“liquidation_threshold”: “0.720000000000000000”
Please note that these risk parameters are subject to change, make sure you stay up to date on the latest information when interacting with the protocol.
Tips for Using UX
- Prevent Liquidation: To mitigate liquidation risks, it is essential to constantly monitor your health factor on the Dashboard page. We highly recommend reading UX’s Lending & Borrowing Documentation to understand how the liquidation threshold is calculated and to comprehend the circumstances under which liquidation occurs before you begin borrowing.
- Keep an Eye on Interest Rates: Interest rates can fluctuate. Regularly check them to ensure your lending strategy remains profitable.
- Stay Informed: The DeFi space is rapidly evolving. Stay updated with UX’s updates and general DeFi trends.
Disclaimer: none of this is financial advice. Please do your own due diligence before participating in any of the mentioned protocols.
This wraps up the seventh post of the Where Is The Cheese Series.
Happy Milking! 🐄🥛
