Borrow Assets
Borrow stablecoins, ETH, or other enabled assets against the LP collateral you have already deposited.
Overview
After deposit and valuation, a borrower can request an asset and amount within the account's available capacity. The Borrow Spoke checks the request and draws the asset from the Hub; the confirmed transaction sends the borrowed tokens to the borrower's wallet. Interest increases outstanding debt over time, so health factor can decline even when the collateral position is unchanged. Unused borrowing capacity provides a buffer against that debt growth and changes in collateral value. Avana values each LP position separately before aggregating borrowing capacity within a Borrow Spoke. Similar-looking positions can contribute different amounts because their pools, recoverable values, and collateral factors differ.
Borrow Checks
The Borrow Spoke checks that the account still holds the deposited positions and that their pools remain approved for collateral use. The borrow amount must fit within your remaining borrowing capacity in that Borrow Spoke. The Hub must have enough of the requested asset available, and protocol caps must allow the borrow. Your account must stay above the liquidation threshold after the new debt is added.
Health Check
Before a borrow is approved, Avana checks that your account stays healthy after the new debt. Health factor is adjusted collateral value divided by outstanding debt. The adjusted collateral value already includes LP valuation, collateral factors, and recoverable-value discounts.
healthFactor = adjustedCollateralValue / outstandingDebtIf health falls below the liquidation boundary, the position becomes eligible for liquidation. See Health Factor for the full model.
Internal Accounting
Debt shares: new debt is recorded through a debt-share model so interest can accrue over time without rewriting the full account balance on every block. Hub draw: the Borrow Spoke requests the asset from the Hub only after the spoke finishes the collateral, capacity, and health checks. State update: the user receives the borrowed asset, and the spoke records the resulting debt state so future health checks, repayments, and liquidation logic all reference the same updated account.
Borrowable Assets
Borrowable assets are configured for each deployment and market. They can include major stablecoins, GHO, ETH, BTC, and other supported assets. Approval of an LP pool establishes collateral eligibility; it does not make every debt asset available to that market.
Check the Avana interface on your target deployment for the live borrow list.
Borrowing Power
Borrowing power is the sum of your approved LP positions in one Borrow Spoke, after collateral factors and risk discounts. Each position contributes based on its own pool, range, liquidity, and risk settings. As debt approaches borrowing capacity, less capacity remains to absorb price changes or interest accrual. See Collateral Factors and Health Factor when sizing a borrow.