How Do I Get a Loan from Compound?
Borrowing cryptocurrency is a different experience than applying for a bank loan. You don't need to fill out paperwork or do a credit check, but you still need to offer collateral on the platform. Select the crypto assets you'd like to borrow and enter the amounts. You may need to purchase more assets depending on the amount you wish to borrow.
Applying for a loan can be time consuming since many steps need to be completed. Luckily, cryptocurrency brought some advantages when it comes to investing and borrowing. Compound Finance is a platform that allows users to link their Ethereum wallets for various transactions. The platform removes the need for KYC checks and is fully automated. If you've asked yourself how to borrow from Compound Finance, keep reading to learn more.
Compound Basics
Being new to this platform doesn't have to discourage you. You can reach out to the Compound Finance help desk anytime. Credit checks and KYC aren't required, but users need to deposit more collateral than what they borrow. Creating an account isn't necessary since you must link a compatible wallet to add assets:
- Go to Compound.finance and click on the App button located near the top right-hand corner.
- Connect using one of five wallets: Metamask, Ledger, Wallet Connect, Coinbase Wallet or Tally.
- Follow the instructions to make a deposit toward the Compound wallet.
- Once you make your deposit, you can lend or borrow from any other cryptocurrency type on the platform after unlocking it individually from its page.
- If you see that the Borrow button is grayed out, it's possible you need to purchase more assets.
Borrowing Assets
You'll see your assets in the Supply column and your borrow amount on the Compound dashboard. Use the sliders next to each deposit type you wish to use as collateral against your loan.
- Select an asset located in the Borrow column.
- Enter the amount that you'd like to borrow. You will see a pop-up prompt that'll show you your used Borrow Limit- the amount of cryptocurrency you can borrow based on collateral you provided. Click the Borrow Button once you're satisfied with the amount, then confirm your transaction.
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