> For the complete documentation index, see [llms.txt](https://docs.astaria.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.astaria.xyz/user-guides/borrowing.md). # Borrowing ## Introduction In Astaria, users are able to create borrowing [intents](/concepts/glossary.md#intents) under specified parameters. These [intents](/concepts/glossary.md#intents) will be publicly broadcasted to the [intent feed](/user-guides/intent-feed.md) to be filled by prospective lenders. It is possible to request loans using any ETH-based asset as collateral (ERC20s and NFTs), and borrow any ERC20 against it. ### Step 1: Transmitting the borrow intent Users will define the key parameters of the intent, specifying: * **Collateral:** The amount and type of asset that will be used to secure the loan * **Borrow amount:** The requested asset and total * **Interest rate:** The maximum [APY](/concepts/glossary.md#apy-annual-percentage-yield) that a prospective lender will receive. This will begin the 24 hour period at 0%, and gradually increase up to the percentage specified in this field. * **LTV:** The [LTV](/concepts/glossary.md#ltv-loan-to-value) will be automatically calculated based on the above fields; however, it can also be directly edited to adjust the borrow amount to meet a desired threshold. **The lower your LTV and the higher your interest rate, the more likely you are to have your intent filled by a lender.**
When the above information is submitted through the Astaria application, the user will sign an EIP-712 message off-chain through their connected wallet to confirm the [intent](/concepts/glossary.md#intents). This signed message is gas-free, though users will have to approve the collateral token before proceeding. ### Step 2: Allow the loan auction to proceed * The finalized intent will then enter the [intent feed](/user-guides/intent-feed.md), where potential lenders have 24 hours to fill the loan. * Over this 24 hour period, the 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. * It is also possible for borrowers to cancel intents before they are filled via the Astaria UI. ### Step 3: Monitoring the loan * If a lender accepts your loan terms, your loan will execute automatically. **The collateral will leave the wallet, and the borrowed token will be deposited back into the same wallet address.** * Borrowers have the ability to repay their loan at any time throughout the loan's lifecycle. * Once a lender has been matched, the lender can hold a [recall auction](/user-guides/loan-recall-and-liquidation.md) 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](/user-guides/loan-recall-and-liquidation.md).