Before you are able to borrow on Qoda, you must first deposit collateral. To deposit collateral on Qoda, first navigate to the Collateral page:
This page lists all the Assets that are accepted as collateral. The first time you deposit collateral, you’ll have to enable the tokens first to be transferred. Each collateral Asset has its own associated Collateral Factor, which is a number from 0–100% that represents a weighting of how much lesser the Qoda collateral system will value your collateral from its current market price due to the perceived market risk of the token. For example, if the price of GLMR is $1.00, the Collateral Factor of GLMR is 75%, and you deposited 1,000 GLMR into Qoda, then the collateral system will calculate it as worth $750 for collateral purposes.
Generally, large, liquid, safer Assets have high Collateral Factors, while small, illiquid, riskier Assets have low Collateral Factors. If an Asset has a 0% Collateral Factor, it can’t be used as collateral, though it can still be lent or borrowed in Qoda Markets.
To deposit collateral, select the asset and enter the amount you wish to deposit.
Qoda has an additional feature of mToken wrapping/unwrapping which allows users to automatically earn additional interest on their deposited collateral via Moonwell protocol. Note that using the mToken wrapping/unwrapping feature incurs some small but non-neglible smart contract risk since it depends on a protocol external to Qoda. Please use this feature at your own risk. You may choose to uncheck the mToken wrapping box to opt out of the feature.
To withdraw your collateral, click Withdraw, enter the desired amount and click Withdraw again. If you are withdrawing mTokens, you are given the option to automatically unwrap the mTokens back into the underlying token by checking the box.
Once you’ve successfully deposited collateral, you can see that the page refreshes with:
- the amount of tokens you have deposited
- the USD value of the tokens you have deposited
- the Collateral Factor
- the Collateral-Factor-adjusted value of your collateral.
You can withdraw your collateral as long as it does not put your Account Health below 1.1, and you can also deposit more collateral anytime.
Aggregated Collateral Info
At the top of your screen, the app will also display:
- Account Health, which measures how close your account is to being liquidated. Any account with Account Health < 1.0 can be liquidated.
- Collateral Value, which is the current combined market value of all your collateral in USD
- Borrow Value, which is the current combined market value of all your borrows in USD
For a deeper technical understanding of how collateral works and how values like Account Health are calculated, you can check the Collateral Management section of the Qoda Whitepaper.