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Borrow

Kylix offers over-collateralized loans that provide borrowers with access to liquidity without having to sell their assets. By placing assets as collateral, users can unlock liquidity and retain their exposure to the market potential of their holdings.

How it works​

  • Collateral deposit: borrowers deposit assets as collateral into Kylix. To mitigate risk, the collateral must exceed the value of the loan
  • Loan-to-Value ratio (LTV): Kylix enforces a Loan-to-Value ratio, ensuring that the loan remains secured by the collateral. Borrowers need to maintain a safe LTV ratio to avoid liquidation
  • Loan repayment: borrowers can repay the loan to retrieve their collateral, or they may hold the loan over time. The loan accumulates interest based on dynamic, polynomial rates, which Kylix adjusts according to market conditions

Risk Management & Liquidation:​

If a borrower’s collateral value drops below a safe threshold (due to market volatility), Kylix’s automated liquidation system sells the collateral in the liquidation marketplace to protect lenders.

This process ensures that lenders are repaid in case of borrower default, while borrowers are incentivized to maintain a healthy LTV ratio.

Unique Borrowing Features​

  • Self-repaying loans: for specific assets, borrowers can opt for self-repaying loans where a portion of the collateral generates yield, automatically offsetting the loan balance over time
  • Flexible access to liquidity: Kylix’s cross-chain compatibility enables borrowers to access liquidity on multiple blockchains, empowering them to leverage assets across a broad network of DeFi opportunities