Use Case

For instance, let's consider Bera, who owns $iBGT but also wants to purchase $iRED. Instead of selling $iBGT to purchase $iRED, Bera can use $iBGT as collateral on Beraborrow to borrow $NECT, and use it to acquire iRED.

Bera was able to maintain exposure to $iBGT whilst also being able to buy $iRED without the need to sell anything.

Here is a breakdown of the process:

1. Bera owns $iBGT.

   

   Bera with his $iBGT

1. Bera opens a "Den" by depositing $iBGT as collateral into Beraborrow. Bera then receives Nectar ($NECT)

Bera with his $NECT and iBGT in Beraborrow.

1. Bera uses borrowed Nectar ($NECT) to purchase $iREDfrom the BEX.

Bera at the BEX swapping $NECT for $iRED