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Borrow USDST

Get USDST against your crypto or metal tokens without selling them.

In the STRATO app, Borrow (sidebar, under TRADE) mints USDST from CDP vaults: you lock collateral and new USDST is created against it. This guide walks through that page. For how vaults, stability fees and liquidation work under the hood, see Mint USDST via CDP.

Lending pool borrowing

STRATO also has a lending pool (LendingPool) where USDST suppliers lend to borrowers. The app does not currently show a lending-pool borrow form. The Borrow page uses CDP vaults only.

Live values

Collateral assets, stability fees, liquidation ratios, debt floors and ceilings are set per asset by governance and can change. The app always shows the current values. Any numbers below are illustrations only.

Before You Start

  • Sign in to app.strato.nexus (the Borrow page is read-only for guests).
  • Hold a supported collateral token on STRATO. If your assets are on another chain, bridge them first (Bridge Assets).
  • Keep a little USDST or some vouchers for transaction fees. Every STRATO transaction costs 0.01 USDST, or one voucher if you hold one. Some actions take more than one transaction (for example, a deposit followed by a mint), and the app shows the total before you confirm. The fee is charged even if a transaction reverts.

Step 1: Choose How Much to Mint

  1. Open Borrow from the sidebar.
  2. In the Mint against collateral (CDP) card, enter a Mint Amount. Available to Mint shows the most you can mint with your current wallet balances and vaults.

  3. Set the Health Factor slider between Safer and Riskier. The label under the slider shows the risk level:

    Target health factor Label
    2.5 or higher Low Risk
    2.0 to 2.5 Medium Risk
    1.5 to 2.0 Higher Risk
    Below 1.5 High Risk

    The slider cannot go below the minimum your vaults allow.

  4. Leave Automatically allocate across vaults checked to let the app decide how much collateral to deposit, and how much to mint, in each vault. Uncheck it to enter your own numbers in the Vault Breakdown table (Asset, Stability Fee, Deposit, Mint, HF).

The card also shows Average Stability Fee, the Transaction Fee (in USDST and vouchers) and, when rewards are active, Mint Rewards APY.

Step 2: Confirm

  1. Click Confirm Mint.
  2. A progress window lists each transaction. Collateral deposits run first, then the mints. If one step fails, the remaining steps are skipped.
  3. When it finishes, the USDST is in your wallet.

What Health Factor Means Here

Each vault holds one collateral asset. For a vault:

Collateralization ratio (CR) = collateral value (USD) / debt (USD)
Health factor (HF)           = CR / liquidation ratio of that asset
  • HF at or above 1: the vault cannot be liquidated.
  • HF below 1 (CR below the liquidation ratio): anyone can liquidate part of the vault.
  • Minting and withdrawing collateral must also keep CR at or above the asset's minimum CR. That minimum is at least the liquidation ratio, so you can never mint straight into a liquidatable position. Price moves afterwards can still get you there.

Illustration only: if an asset's liquidation ratio were 150% and your vault held $3,000 of it against 1,000 USDST of debt, CR would be 300% and HF would be 2.0. A 50% fall in that asset's price would bring HF to 1.0.

Debt grows over time through the asset's stability fee, so HF drifts down slowly even when prices don't move.

Step 3: Manage Your Position

Once you have a position, two cards appear beside the mint card:

  • Your Position: Total Debt, Average Stability Fee, Average Health Factor, Vault Collateral Supplied.
  • Your Vaults: one row per collateral asset, with its health factor and four actions:
Action What it does Max option
Deposit Add collateral to the vault (raises HF) -
Withdraw Take collateral back (lowers HF) Withdraw Max withdraws the most you can while keeping CR at or above the minimum
Mint Mint more USDST from this vault (lowers HF) Mint Max USDST
Repay Burn USDST to reduce this vault's debt (raises HF) Repay All USDST

Each action previews the vault's new health factor before you confirm.

Watch your health factor

If a vault's health factor falls, add collateral or repay debt before it reaches 1. The Portfolio page shows a warning when a vault is close to liquidation.

Step 4: Repay and Close

  1. Get enough USDST to cover the debt plus accrued stability fees. You can swap for it or use USDST you already hold.
  2. In Your Vaults, choose Repay on the vault. Enter an amount, or use the max option (Repay All USDST) to clear the vault's debt.
  3. Choose Withdraw (or Withdraw Max) to take your collateral back.

Debt floor

Each asset can have a minimum debt per vault. A mint that would leave the vault below that floor is rejected. So is a partial repay: in that case, repay in full with Repay All USDST.

If You Get Liquidated

When a vault's health factor drops below 1, any user can repay part of its debt and take collateral worth that amount plus a per-asset liquidation penalty. Advanced > Liquidations lists positions that can be liquidated. You keep the USDST you minted but lose the seized collateral. For how much can be taken and how it's priced, see Mint USDST via CDP.

Costs

Cost How it works
Stability fee Annual rate set per collateral asset. It compounds every second and is added to your debt. The app shows it for each vault.
Transaction fee 0.01 USDST or one voucher for each STRATO transaction
Liquidation penalty Only charged if your vault is liquidated

Common Errors

Message Meaning What to do
Insufficient Collateral Your balances can't support the mint amount at the chosen health factor Lower the amount, move the slider toward Riskier, or add collateral
Debt floor prevents allocation / below debt floor The mint would leave a vault under its minimum debt Mint more, or pick a different vault
repay leaves debt below floor A partial repay would leave debt under the floor Use Repay All USDST
below min CR The withdrawal or mint would push CR under the minimum Withdraw or mint less, or repay first
debt ceiling exceeded Total USDST minted against this asset is at its limit Use another collateral asset
Mint/Withdraw paused by admin The asset or the engine is paused Wait, or use another asset

Next Steps