Borrowing

The Apollo protocol offers users the opportunity to borrow specific assets at a reasonable rate, which can then be utilized across various products and services within the SORA network.

To initiate a loan for a particular asset, users must first deposit a collateral amount. This unique collateral amount is determined by the token's loan-to-value ratio (LTV), as outlined in the Risk Parameters page. In the event that the borrower fails to repay the total owed amount (borrowed amount + interest), the collateral amount will be liquidated.

If a user wishes to retrieve their deposited collateral for a specific borrowed asset, they must first fully repay the loan and the accrued interest. For example, if a user borrows 1 ETH, they will need to repay 1 ETH along with interest to reclaim their deposited collateral. All available assets and the values that are associated with them (LTV, LT, RF) can be found in the Risk Parameters page.

Rewards for Borrowers

Fixed reward

Part of APOLLO supply will be distributed to borrowers across all pools over the course of 12 months.

Health Factor

Health Factor (HF) is the underlying value that quantifies the safety of a deposited asset relative to a borrowed asset. The higher the value, the safer the asset status is against liquidation, seizing your collateral assets. When HF decreases and becomes less than 1, your asset may liquidate. The calculation of HF depends on the liquidation threshold of your collateral and borrowed assets. All parameters for each type of asset can be found in Risk Parameters.

It's crucial to understand that failing to manage your borrowed assets appropriately could lead you towards liquidation. To learn more about how liquidation works, please refer to the Liquidation section.