Borrow
Overview
The Borrow Building Block facilitates collateralized borrowing management across multiple DeFi lending protocols by enabling users to collateralize their tokens and borrow against it in a single transaction. Through combining collateralized borrows into an automated multi-protocol strategy on Factor, borrowers maintain exposure to their collateralized token while unlocking greater capital efficiency for their strategies on Factor Studio.
With integrations across multiple lending protocols, borrowers are free to choose between their preferred protocols, tokens, and strategies without worrying about specific protocol differences. The Borrow Building Block allows borrowers to easily access more liquidity while offsetting the opportunity costs of HODLing their favourite tokens.
Features
Access More Capital: Borrow against your collateral and get access to more capital while maintaining full exposure to your token supplied. Aside from having to repay the interest, there are no restrictions on what you can do with the borrowed tokens.
Create Leverage: Swap your borrowed tokens for more collateral tokens and achieve leveraged exposure to the supplied tokens. This can be repeated ad infinitum to maximize your capital efficiency.
Carry Trading: Supply your borrowed tokens into a market where the supply interest is greater than the borrow interest and earn the difference in yields plus any additional supply interest on your initial lending position.
Integrations
Factor has integrated with leading lending protocols, offering a broad spectrum of possibilities for your strategies.
Visit our Factor Discover page to see the latest leverage strategies.
Don't Limit Your Strategies To Just Borrows
Factor Studio enables different Building Blocks to be mixed-and-matched thereby facilitating multi-step strategies which span across the whole DeFi ecosystem.
Please refer to Supported Protocols to view the full list of DeFi protocols which have been integrated with Factor Studio.
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