Ask or search…
K
Links

Borrowing

Borrow intents are loan requests that can be automatically matched with prospective lenders.

Introduction

In Astaria v1, every loan origination is an intent. An intent is essentially a timed linear inclining rate auction with specified bounds on the amount. It's crucial for borrowers to understand how to submit their intents properly, as this forms the foundation of initiating a loan in the Astaria v1 protocol.
Borrowers sign gas-free messages specifying their desired loan terms. You can request loans using any asset as collateral (ERC20s and NFTs) and borrow any asset. Most users choose to borrow stablecoins or WETH.

Step 1: Transmitting the Borrow Intent

  • Define Key Parameters: The borrower must sign an EIP-712 message off-chain, by transmitting an intent through the Astaria application. This signed message is gas-free, although users will have to approve the collateral token before proceeding.
TIP: The lower your LTV and the higher your interest rate, the more likely you are to have your intent filled by a lender.

Step 2: Allow the Loan Auction to Proceed

  • Your request then enters the Intent Feed, where potential lenders have 24 hours to fill your loan.
  • Over this 24 hour period, your proposal will be live with a starting interest rate of 0% and ending with an interest rate that matches the maximum interest rate requested.
  • The interest rate will increase continuously until a lender decides to accept the loan terms, or the 24 hour period ends and the intent expires.
  • Borrowers can also cancel intents before they are filled.

Step 3: Monitoring the Loan

  • If a lender accepts your loan terms, your loan will execute automatically. The collateral will automatically leave your wallet and you will automatically receive the borrowed token.
  • Borrowers have the ability to repay their loan at any time throughout the loans lifecycle.
  • Once a lender has been matched, the lender can hold a recall auction after a 24 hour honeymoon period.

Additional Notes

  • Open Term & Recall: Loans in Astaria v1 are open term but can be recalled. Once a lender has been matched, the lender can hold a recall auction.