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Tessera

How to Borrow

Borrowing lets you unlock liquidity without selling your tokenized stocks. Post your tAAPL, tTSLA, or tSPY as collateral, borrow USDC, and repay with interest whenever you choose.

Step 1: Deposit Collateral

Navigate to the Borrow section. Select the tokenized stock you want to use as collateral. Enter the amount. Approve the vault to transfer your tokens. Click Deposit. Your tokenized stock is now held in the vault.

Step 2: Determine Your Borrow Capacity

Your borrow capacity is calculated as: Borrow Capacity = Collateral Value times Max LTV.

For example, if you deposit 10,000 USD of tAAPL (max LTV 50%), your borrow capacity is 5,000 USDC. The collateral value is determined by the on-chain price feed (testnet mock on chain 46630; licensed real feed at mainnet). The Max LTV is set conservatively for overnight/weekend gaps.

Step 3: Borrow USDC

In the Borrow section, enter the amount of USDC you want to borrow (up to your capacity). Click Borrow. You receive the USDC instantly. The vault begins accruing interest on your debt.

Your Interest Rate

Your borrow interest rate is determined by the borrow APR, which varies based on how much of the lenders' USDC pool is in use. Low utilization (less than 80%) means slower interest growth; high utilization (greater than 80%) means steep growth. The maximum borrow rate is capped at 300% APR.

Step 4: Repay Your Debt

At any time, go to the Borrow section and enter the amount of USDC you want to repay (including accrued interest). Your debt decreases, and you move further from the liquidation line. You can repay all at once or in increments.

Step 5: Withdraw Your Collateral

Once you've fully repaid your debt, you can withdraw your tokenized stock. Go to the Borrow section and click Withdraw Collateral. You receive your tAAPL, tTSLA, or tSPY back, free and clear.

Key Points

  • Minimum borrow: 100 USDC per loan. No maximum beyond collateral capacity.
  • Interest accrues every block. Check your dashboard for real-time debt.
  • You can repay or borrow more anytime your health factor allows.
  • Your collateral is locked while you have debt. You cannot withdraw until repaid.
  • The Watcher monitors 24/7. If your HF drops toward liquidation, it will attempt auto-repay (if approved) or liquidate (if necessary).