How to get a fixed rate loan with price protection
Price protection: The mint ratio represents how many dollars you can borrow per token. If the price of your token drops below this value at expiry, there's no need to repay your loan! Keep the cash.
Steps to getting a fixed-rate loan
Step 1: Click on the "Borrow" tab under the collateral option you want along with the expiration you desire. In this example, we will use wETH as collateral.
Step 2: Enter the amount of collateral you wish to deposit, for this example we will use 1 wETH.
Make sure to take into account the mint ratio (example: a mint ratio of 800 means 1 wETH deposited gives you the borrowing power of ~800 DAI and 800 RR tokens)
Step 3: Click the "Confirm Borrow DAI with wETH" button. You will be borrowing 785 DAI with your 1 wETH.
The difference of 785 DAI and 800 RR tokens is the effective interest you are paying, which gives you a fixed rate loan! This example shows a 2.25% annualized interest rate.
Step 4: Metamask will pop up, sign the transaction.
Step 5: Metamask will pop up again, confirm the transaction to deposit your 1 wETH and borrow 785 DAI.
Congratulations! You have successfully deposited your collateral, 1 wETH, and borrowed 785 DAI against it with an annualized interest rate of 2.25%!
The Stablecoin will be sent to your wallet, along with an RR token which represents your locked collateral. 😊
You must repay your loan prior to the expiration or you will forfeit your collateral!