Borrow $MORE

Stack provides isolated lending markets that allow you to borrow against various tokenized collateral.

In this tutorial we'll get our new crew trained and ready to start stacking $MORE. You'll see it's so easy that even those with milkshakes for brains can figure it out.

Depositing Collateral and Borrowing $MORE

Go to stackmore.xyz and click “Borrow.”

On the borrow page, you can select the collateral assets drop down to see what tokens you can use as collateral to deposit into the isolated lending market. Select the collateral you wish to use and the appropriate market will open.

In this example we are depositing $reETH which we'll use as collateral to borrow $MORE against.

First, you decide how much $reETH will be deposited as collateral. Next, you determine how much $MORE will be borrowed against that collateral by either typing into the input labeled “MORE” or by using the LTV (loan to value) percentage buttons immediately below.

Stack positions cannot be opened for less than 100 $MORE. Positions opened for less than 100 $MORE will fail.

The data below dynamically updates as you tweak the transaction parameters, enabling you to fine-tune the transaction until it aligns with your desired outcomes.

• Collateral Deposit: This section displays the type of tokens you're depositing as collateral, the total amount, and their current value.

• Borrow $MORE: Here, you'll see the total amount of $MORE that will be borrowed after initiating the position.

• Loan to Value (LTV): Representing the percentage of $MORE you wish to borrow against your collateral. A higher LTV brings the liquidation price closer to your collateral's actual price, increasing the overall liquidation risk.

• Liquidation Price: If the trading price of your collateral reaches or falls below this number, your position may be liquidated.

Market Parameters

Above the Borrow button is a box showing the parameters of the lending market, which are specific to the collateral being deposited.

• Maximum collateral ratio: Maximum collateral ratio (MCR) represents the maximum amount of debt a user can borrow against the current value of the collateral token. For instance, if you are depositing $100 $reETH of collateral and the MCR is 70%, then you can borrow up to 70 $MORE.

  • The team determines the MCR based on a variety of factors with the primary evaluation done by our in-house risk analyst.

• Liquidation Fee: This is an additional amount of collateral that a borrower looses when their CDP is liquidated. The fee is deducted directly from the borrower’s collateral as compensation for the time and risks that the liquidator may be taking (e.g., slippage, high gas fees, etc.) See this hypothetical example for more context.

  • 50% of the fee is kept by the liquidator and 50% of the fee lands in the Stack Insurance Fund

• Borrow Opening Fee: A fee that is charged on the amount of $MORE that you borrow. For example, if you borrow 100 $MORE on a market with a 1% borrow fee, you will owe 1 $MORE in addition to the 100 $MORE you borrowed. Your outstanding debt will therefore be 101 $MORE.

• Borrow APR: The annualized rate that your debt will increase by each year. More info here.

• Price: Current price of the selected collateral.

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That concludes your training on Borrowing. You're ready to hit the griddle and stack some $MORE.