# 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). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.astaria.xyz/user-guides/borrowing.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.