Borrow

Borrowing tokens from the Const Protocol allows users to access more assets by using their supplied tokens as collateral, unlocking capital without selling their assets. However, borrowers face liquidation risk if the value of their collateral falls below the required threshold.

Interest rates are fixed for each lending, simplifying interest calculation and making future expectations clearer.

To maintain a healthy ratio and avoid liquidation risk, borrowers should actively monitor their collateralization level. Keeping their health factor in check helps ensure borrow positions remain overcollateralized, even as market conditions shift or interest accrues.

To reduce lending costs and avoid the risks associated with interest rate fluctuations, borrowers can opt for a fixed-rate loan with a more favorable interest rate through the Const Protocol.