Borrow

The borrow flow allows the protocol to take a loan against collateral on behalf of a user.

User Requests Loan on Supplied Collateral

**********API ENDPOINT HERE**********

Params

Type	Name	Description
Bytes	borrowData	The borrow data for the lender
Number	value	Ether value being sent (0 if none)
String	userAddress	The address of the user requesting loan
String	lenderName	The name of the lender
String	debtToken	The users desired debt token
Number	rateMode	The rate mode to be utilized by the lender

Backend sends request to pricing/risk engine

The backend will send required params to the backend risk engine. This will allow the Pricing engine to output a foreclosure price. These parameters are then used to execute smart contract functions.

Backend Retrieves Lender Data

Given the lender name, and the users position information (From the previous Supply calls) The backend will retrieve pertinent borrow (loan) data. The backend will then forward this information in the next section.

Backend Forwards Pricing Data to User (With Lender Data)

The backend will forward the pricing data generated to the frontend for verification by the user

• APR

• LTV (From Lender)

• Foreclosure price

• Foreclosure Penalty

Type	Name	Description
Number	apr	The APR offered by the lender
Number	lenderLtv	The LTV that the lender calculates
Number	foreclosurePrice	The price in which the loan will be foreclosed
Number	foreclosurePenalty	The penalty levied against the user in the event of a foreclosure

User elects to take out loan

The user reviews the above data, then elects to take the loan.

****API ENDPOINT****

The frontend will call the API endpoint. The backend will then execute the appropriate smart contract function calls.

Backend Executes Smart Contract Calls

Step 1: Create Borrow Data

It is necessary for the backend to retrieve the lender's address from the DB

borrowData = encode(
[string, string, uint256, uint256, string],
 [lenderAddress, debtToken, amount, rateMode, userAddress]
 )

Step 2: Create Module Data

borrowFn = contract.encodeABI(
    fn_name="borrowFromLender",
    args=[borrowData, 0 ether, userAddress, lenderName]
    )

Step 3: Execute borrowFromLender Function

protocol.execute("LenderModule", 0 ether, borrowFn, Enum.Operation.Call);

Add Borrow Data to Loan Token

Step 1: Create Borrow Data

borrowData = encode (
    [address, uint256],
    [debtToken, amount]
)

Step 2: Create Loan Data

loanData = encode(
    [uint256, uint256],
    [1, *CollateralBalance]
)

Step 3: Create Function Call Data

addBorrowToLoanFn = contract.encodeABI(
    fn_name="addBorrowToLoan"
    args=[borrowData, userAddress, uniqueId, loanData]
)

Step 2: Execute addBorrowtoLoan

protocol.execute("LoanBrokerageModule", 0 ether, addBorrowToLoanFn, EnumOperation.Call)