🔄Lend, Borrow & Repay
Learn about Vertex’s yield markets, how to earn interest, and how to borrow assets.
Contents:
Introduction to Vertex Yield Markets
Earn Interest (Automatically)
Borrowing
Repay Borrows
Introduction to Vertex Yield Markets
Vertex users benefit from Vertex’s integrated money markets.
The money market was designed to help facilitate the borrowing and lending of spot assets between traders, which is especially helpful when taking leveraged spot positions.
You do NOT need to trade to make use of Vertex’s money markets. Instead, users can utilize them in the same way they would use other lending protocols such as Aave.
Borrow assets and withdraw them to use elsewhere.
Deposit assets and automatically earn interest.
All of this happens within your unified cross-margin account, meaning that you can borrow assets against your basket of open positions, pools, and deposits. You also automatically earn interest on the assets you deposit and use as margin.
How to Earn Interest (Lending)
Lending and earning interest is as simple as depositing an asset.
Earning interest happens automatically on Vertex. You do not need to perform any additional actions after depositing to earn interest.
Vertex’s money market is integrated -- meaning that the assets you deposit to use as margin can also be borrowed by other traders.
You can view current deposit APRs on the Earn Page of the Vertex app or on the Balances table in the Portfolio Page.
Borrowing Assets
This tutorial will cover how to borrow and withdraw assets for use elsewhere -- similar to how one would use lending apps like Aave.
As a Vertex user, you can borrow against your account’s unified margin composed of deposits, positions, and pools. You will pay a borrow APR for borrowing the asset.
If you are interested in borrowing to trade spot, please refer to the Margin Spot section in the Spot Trading tutorial.
How to Borrow
Step 1. Deposit.
Before borrowing, you need to deposit assets as collateral / margin.
Refer to the Quickstart or Cross-Chain Deposit Tutorials.
Step 2. Initiate Borrow.
Click on [Borrow] button on the asset you want to borrow in any Balances table.
Alternatively:
Click on any [Withdraw] button and turn on the ‘Enable Borrows’ toggle.
Step 3. Enter Borrow Details.
Select the asset you want to borrow.
Enter the amount.
Check the summary and account impact.
Click [Borrow and Withdraw] and sign transaction if you don’t have 1-Click Trading enabled.
How to Repay
This tutorial will focus on Vertex’s Repay feature. You can also repay borrows by trading the spot asset directly.
How to Repay:
On the Balances table, click the [Repay] button for the borrow you wish to repay.
A pop-up will open.
There are 2 options / methods to repay: convert or deposit (see details below).
Select your method and enter in the amount to repay.
Review the summary.
Click the [Repay] button.
Repay Convert:
This method allows you to swap (convert) one balance to pay off the borrow.
Repay asset (i.e., wETH) by convert quote (i.e., USDC).
Repay quote by converting any positive non-quote balance.
Please note that the convert feature uses the market price to estimates the total. If the trade happens at a better exchange rate, you will end up with a small positive balance in the asset you were borrowing.
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