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Flux Finance is a trustless overcollaterized lending protocol. A borrower must provide collateral worth more than the debt to guarantee an incentive to repay it.

Each asset has an associated collateral ratio: the share of its value that can be borrowed. Assets with zero collateral ratio can't be used as collateral.

Borrowers mint fTokens just like lenders and deposit them as collateral. Your supplied assets still earn interest (i.e. the supply rate) while you're using them as collateral, potentially offsetting your borrowing costs (i.e. the borrow rate).

The borrow rate for an asset fluctuates based on its utilization (i.e. the percentage of the asset's pool that has been borrowed). The borrow rate increases as utilization increases, balancing supply and demand for a given asset. The borrow rate increases sharply once utilization surpasses a threshold ('kink'), incentivizing borrowers to repay some of the debt to maintain enough liquidity for lenders.

Borrowers should monitor their positions to ensure that their LTV stays at a healthy level. If the account liquidity (i.e. the aggregate collateral factor of its assets) becomes negative, the borrower's account will become liquidable and might incur a small liquidation fee. Refer to Liquidations for details.



  1. Follow the instructions to mint fTokens in Lending for the assets you'd like to use as collateral.

  2. On the dashboard, click the "Collateral" toggle for the assets you'd like to use as collateral, and complete the transaction. This will increase your borrowing limit.

  3. Under "Borrow Markets", click the asset you'd like to borrow.

  4. Enter the amount you'd like to borrow.

  5. Click "Borrow" and complete the transaction.


  1. Under "Borrow Markets", click the asset you'd like to repay.

  2. Click the "Repay" tab on the modal.

  3. Enter the amount you'd like to repay.

  4. Click "Repay" and complete the transaction.

  5. You can now redeem your fTokens to withdraw your collateral, if you'd like.