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.
Navigate to Supply <insert link> or click on Supply tab on the Loop! page.
In the Supply subtab, pick your asset from the dropdown and enter how many tokens you will deposit. Here, you will also see Supply APY and New Supplied Value info.
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. It is important to understand that if you borrow near or up to the max borrowable amount, and the market experiences a downturn, your assets enabled as collateral are at risk of being liquidated (e.g. taken from you to repay your bad debt). You can see more details on your position and/or manage your position in the Positions tab.
Asset Lending Factors
Each asset has a different lending factor per the following table:
gmBTC
0.8e18
gmETH
0.8e18
gmSOL
0.8e18
Having a collateralized position also enables you to Loop your GM tokens.
Disabling Assets as Collateral
At any time, you can choose to disable GM tokens as collateral. Go to ----- and click on the asset you wish to disable. Click disable and sign the transaction that auto-populate in your wallet. If you have an active borrow position, the protocol will check if you have enough of collateral in other GM tokens so that your overall Health Factor remains above 1. The disable call should revert if the transaction would bring you below the minimum Health Factor.
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