Borrowing feUSD
For any questions, join the Felix Discord, and reach out to contributors.
Last updated
For any questions, join the Felix Discord, and reach out to contributors.
Last updated
On the testnet application, users can deposit ETH, BTC, SOL, or HYPE as collateral within the Felix protocol and borrow feUSD. When tokens are supplied, they are transferred to the Felix Protocol, a system of smart contracts that facilitates overcollateralized borrowing of tokens.
Borrower interest rates are influenced by on-chain inputs such as token balances, oracle prices, and the borrow utilization ratio. As liquidity is supplied, borrowed, repaid, or withdrawn from the pool, the interest rates are updated accordingly.
To begin, press ‘Connect Wallet’ and select your preferred wallet provider corresponding to the wallet holding tokens you intend to deposit as collateral.
Once connected, navigate to the ‘Borrow’ page where you’ll find the ‘New Positions’ table, which lists supported collateral, current token balances, and asset parameters. Find the collateral that you want to deposit into Felix, and click the borrow button on the right.
In the modal that pops up on the right, select the amount that you want to deposit as collateral, and the amount of feUSD that you want to borrow. Ensure that you maintain a safe collateralization ratio to avoid liquidation.
After clicking the confirm button, a modal will appear that will prompt a transaction or message signature request in the connected wallet. In order to transfer tokens on the Hyperliquid L1 network, the Felix smart contract must be granted an allowance to transfer tokens from the connected wallet address. Approvals can be performed through transaction.
After the approval transaction, there will be one more request to confirm the transaction of depositing your collateral into the protocol and borrowing feUSD. Once you click confirm, you should be good to go in a few seconds!
