Lending & Borrowing

How to Lend and borrow using the Acumen Protocol.

This tutorial will cover the basic functionality of the Acumen protocol and will help you master using the Acumen protocol! To begin, make your way over to our app.
The app should look like this:
Shows how much $ is being supplied and how much $ is being borrowed
The supply side shows how much money is being supplied and the borrow side shows how much money is being borrowed. Right now, there is a market supply of ~$400,000 and a total borrow of ~$ 80,000. This means that there is $400,000 available to borrow and around 20% of it or $80,000 is being borrowed.
To begin earning Interest or borrowing assets one must first deposit money into the Acumen protocol. To do this, click on the supply box and select the asset you want to supply. Once you select an asset it should bring you to a page like this:
Shows APY for individual asset calss and how much you have deposited
To deposit, click "deposit" on whatever asset type you would like to supply. Let's say I want to deposit STEP, I would click on the deposit button by the STEP asset class and you will see this screen:
Deposit Screen
This screen shows all the important metrics about the pool you are depositing in ie, Utilization rate(how the liquidity is being utilized), how much you can borrow, the apy you earn by depositing, the liquidation threshold, and liquidation bonus.
To deposit, simply connect your wallet and imput the amount of STEP you want to deposit. When a user deposits money into the protocol, the funds are converted into zToken versions of the asset class. These zTokens are how the protocol ensures that the apy is paid out to the protocol's users. When you withdraw your funds, these zTokens will be burned and you will recieve your principle and the interest earned for the amount of time you deposited. After, your transaction is confirmed you will be able to view your dashboard and see all you deposits/ loans.
Your dashboard should look as follows:
From your Dashboard, you will be able to manage all your existing liquidity positions.
Borrowing is essentially the same procedure as depositing. First, you must select the asset class you want to borrow, and then make sure you have funds deposited into the protocol to put up as collateral. As of right now, you can only put up USDC as collateral, but we will be implementing cross collateralization shortly, so that users will be able to borrow other assets with STEP, ETH, SOL, etc.
Once you have choosen what you want to borrow, you will see this screen:
Borrow Screen
There are some important metrics to note. At the top of the screen, you will see how much you have borrowed, how much borrowing power you have used, and your borrowing power in dollar amount. Keep in mind, that once your borrowing power reaches 100% you will encounter problems when taking out loans. The system is designed this way to ensure that users can borrow only a healthy amount. Another thing to note, is that if your borrowing power is around 95%, you will encounter problems when taking out loans that push your borrowing power to over 100%, and will have to repay your other loans to lower your borrowing power used.
After making sure that you have enough collateral you are now able to take out a loan! Simply choose how much of the asset you want to borrow and press the borrow button. When a users borrows on the Acumen protocol, the user is pledging their zTokens as collateral, this ensures that the user pays the apy on their loan, and also allows other users to utilize the money you have deposited into the protocol, unlike in a p2p structure where borrowers and lenders are connected, our protocol is based on pools so users can move in and out of the pools at ease.
Once you have taken out a loan, you must be conscious of your health factor(HF). Maintaining a healthy HF is essential to not being liquidated. For more information refer to the liquidation section of the docs.
Last modified 6mo ago
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