Depositing Collateral Assets

Providing Collateral with GM Tokens

At present, you can provide gmBTC, gmETH, and gmSOL as collateral tokens. GMI (and potentially more) will be enabled in the future.

1. Navigate to the Deposit/Borrow <insert link> page.

2. In the Deposit/Borrow Markets subtab, pick your asset from the list and enter how many tokens you will deposit. Here, you will also see New Supplied Value, new Health Factor, and Max Loan-to-Value (LTV) info.

3. Click supply and sign the transactions (one for token spending approval, and one for the deposit itself) that auto-populate in your wallet.

Once the transaction has been completed, the GM tokens are automatically enabled as collateral, and you will have opened a collateralized position. From here, you can borrow as much USDC as you see fit until you reach the maximum borrowable amount, which is determined by the lending factor of your posted collateral (see table below).

It is important to understand that if you borrow near or up to the max borrowable amount (health factor close to 100%), and the market experiences a downturn, your assets enabled as collateral are at risk of being liquidated (e.g. taken from you by other users that repay your bad debt). You can see more details on your position and/or manage your position in the Portfolio tab.

Asset Lending and Borrowing Factors

Each asset has a different lending factor per the following table:

Asset	Lending Factor	Borrowing Factor
gmBTC	0.70	0
gmETH	0.70	0
gmSOL	0.70	0
USDC	0	1

Having a collateralized position also enables you to Loop your GM tokens.

Disabling Assets as Collateral

At any time, you can choose to disable a deposited GM asset as collateral. Go to the Portfolio tab and click on the asset you wish to disable. You will see a "Collateral" row and a slider button next to it, which should by in the enabled position (slid to the right and brightly colored) by default. By clicking the slider, you will initiate a transaction that will change the collateral to the opposite setting. If it is enabled, clicking the slider will initiate a disable collateral transaction. Clicking it while it is disabled (slid to the left and grayed out) will initiate an enable collateral transaction. Sign the transaction that auto-populate in your wallet.

If you have an active borrow position, the protocol will check if you have enough collateral value from other enabled GM tokens to keep your overall Health Factor above 100%. If disabling an asset would bring you below the minimum Health Factor, then the transaction will revert. As an example, if you have an active borrow, and you only have one GM asset as collateral, you cannot disable that asset as collateral.