Borrow

How Does Borrowing Work?

WeissFi enables users to borrow the WEIS stablecoin against their SUI holdings with user-defined interest rates. Unlike traditional DeFi lending platforms, WeissFi gives borrowers full control over the interest they pay, making it a flexible and capital-efficient borrowing solution.

Unlike traditional lending platforms, WeissFi lets you:

Instant Liquidity – Borrow WEIS immediately against your SUI holdings while maintaining exposure to the asset.
Choose your interest rate – You decide the interest rate for your loan, allowing for optimal financial planning.
Efficient Liquidations – WeissFi utilizes Stability Pools to absorb liquidated debt, protecting borrowers from sudden liquidations.
No Fixed Repayment Schedule – Repay your loan at any time, as long as you maintain a healthy Loan-To-Value (LTV) ratio.
No Counterparty Risk – WeissFi is a fully decentralized protocol running on the Sui blockchain.
Avoid Unpredictable Interest Hikes – Unlike traditional lending platforms where interest rates fluctuate based on external governance or algorithmic adjustments, WeissFi allows borrowers to set their own interest rate.

How to Borrow (Step-by-Step)

Step 1: Enter The Collateral Amount

Enter the amount of SUI you want to use as collateral.
Your collateral determines how much WEIS you can borrow.

Step 2: Choose Loan Amount

Enter the amount of WEIS you wish to borrow.

Step 3: Select Your Interest Rate

Set the interest rate you’re willing to pay.

Step 4: Review & Sign

Check the loan summary: ✓ Collateral ✓ Loan amount ✓ Interest rate ✓ Total Debt (Loan Value + (0.75% Borrowing Fees) + (7-Day Interest rate))
Click Confirm & Sign to finalize your loan.
You receive WEIS directly in your wallet and can use it immediately.

Glossary

Loan-to-Value (LTV) Ratio

Definition: The ratio between the amount of WEIS borrowed and the deposited collateral (in USD).

LTV = \left( \frac{\text{Borrowed WEIS (USD)}}{\text{Collateral Value (USD)}} \right) \times 100

Example Calculation:

SUI Price: $3.9674
Collateral: 2,000 SUI
Collateral Value: 2,000 × 3.9674 = 7,934.80 USD
Borrowed Amount: 2,000 WEIS

LTV = \left( \frac{\text{2000}}{\text{7,934.80}} \right) \times 100 = 25.20 %

Higher LTV = Higher liquidation risk.

Liquidation Price

Definition: The Liquidation Price is the SUI price at which your collateral is no longer sufficient to cover your borrowed WEIS, triggering liquidation.

Liquidation{\text{Price}} = \frac{\text{Borrowed Amount} \times 1.19}{\text{Collateral Deposited}}

Example Calculation:

SUI price = $3.9674
Collateral: 2,000 SUI
Borrowed Amount: 2,000 WEIS
Current LTV = 25.20%
Max LTV = 80%

Liquidation{\text{Price}} = \frac{\text{2000} \times 1.19}{\text{2000}} = 1.19

This means that if the price of SUI drops below $1.19, your position will be liquidated.

Redemption

If WEIS loses its $1 peg, holders can redeem WEIS for SUI using the redemption mechanism.
This process only affects borrowers with the lowest collateralization ratio, not specifically those with low interest rates.
The redeemer exchanges WEIS for SUI by reducing the debt of the least collateralized borrowers.
Borrowers lose some of their collateral, but their debt is reduced by an equivalent amount in WEIS.
Redemptions do not incur additional fees, but borrowers with low collateral ratios are at risk of being affected.

Lower rate → Cheaper loan but higher chance of redemption.

Higher rate → More expensive loan but lower chance of redemption.

To Summarize

Keep your LTV low to avoid liquidation.
Choose a balanced interest rate to minimize redemption risk.
Manage your loan via the dashboard anytime.

Start Borrowing today and take advantage of decentralized finance on Sui.

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Last updated 3 months ago

How Does Borrowing Work?

Unlike traditional lending platforms, WeissFi lets you:

Instant Liquidity – Borrow WEIS immediately against your SUI holdings while maintaining exposure to the asset.
Choose your interest rate – You decide the interest rate for your loan, allowing for optimal financial planning.
Efficient Liquidations – WeissFi utilizes Stability Pools to absorb liquidated debt, protecting borrowers from sudden liquidations.
No Fixed Repayment Schedule – Repay your loan at any time, as long as you maintain a healthy Loan-To-Value (LTV) ratio.
No Counterparty Risk – WeissFi is a fully decentralized protocol running on the Sui blockchain.
Avoid Unpredictable Interest Hikes – Unlike traditional lending platforms where interest rates fluctuate based on external governance or algorithmic adjustments, WeissFi allows borrowers to set their own interest rate.

How to Borrow (Step-by-Step)

Step 1: Enter The Collateral Amount

Enter the amount of SUI you want to use as collateral.
Your collateral determines how much WEIS you can borrow.

Step 2: Choose Loan Amount

Enter the amount of WEIS you wish to borrow.
Keep an eye on the (Loan-to-Value Ratio) and to avoid risks.

measures how much you borrow relative to your collateral. A higher LTV means higher risk.

is the SUI price at which your loan will be liquidated if your collateral becomes insufficient.

Step 3: Select Your Interest Rate

Set the interest rate you’re willing to pay.
Lower rates reduce your borrowing cost but increase .

: If the WEIS peg falls below $1, users can redeem WEIS for your collateral at a 5% discount.

Step 4: Review & Sign

Check the loan summary: ✓ Collateral ✓ Loan amount ✓ Interest rate ✓ Total Debt (Loan Value + (0.75% Borrowing Fees) + (7-Day Interest rate))
Click Confirm & Sign to finalize your loan.
You receive WEIS directly in your wallet and can use it immediately.

Glossary

Loan-to-Value (LTV) Ratio

Definition: The ratio between the amount of WEIS borrowed and the deposited collateral (in USD).

LTV = \left( \frac{\text{Borrowed WEIS (USD)}}{\text{Collateral Value (USD)}} \right) \times 100

Example Calculation:

SUI Price: $3.9674
Collateral: 2,000 SUI
Collateral Value: 2,000 × 3.9674 = 7,934.80 USD
Borrowed Amount: 2,000 WEIS

LTV = \left( \frac{\text{2000}}{\text{7,934.80}} \right) \times 100 = 25.20 %

Higher LTV = Higher liquidation risk.

Liquidation Price

Definition: The Liquidation Price is the SUI price at which your collateral is no longer sufficient to cover your borrowed WEIS, triggering liquidation.

Liquidation{\text{Price}} = \frac{\text{Borrowed Amount} \times 1.19}{\text{Collateral Deposited}}

Example Calculation:

SUI price = $3.9674
Collateral: 2,000 SUI
Borrowed Amount: 2,000 WEIS
Current LTV = 25.20%
Max LTV = 80%

Liquidation{\text{Price}} = \frac{\text{2000} \times 1.19}{\text{2000}} = 1.19

This means that if the price of SUI drops below $1.19, your position will be liquidated.

Redemption

If WEIS loses its $1 peg, holders can redeem WEIS for SUI using the redemption mechanism.
This process only affects borrowers with the lowest collateralization ratio, not specifically those with low interest rates.
The redeemer exchanges WEIS for SUI by reducing the debt of the least collateralized borrowers.
Borrowers lose some of their collateral, but their debt is reduced by an equivalent amount in WEIS.
Redemptions do not incur additional fees, but borrowers with low collateral ratios are at risk of being affected.

Lower rate → Cheaper loan but higher chance of redemption.

Higher rate → More expensive loan but lower chance of redemption.

To Summarize

Keep your LTV low to avoid liquidation.
Choose a balanced interest rate to minimize redemption risk.
Manage your loan via the dashboard anytime.

Start Borrowing today and take advantage of decentralized finance on Sui.