Most people think borrowing is simply about taking liquidity out of a lending market.
But on JustLend DAO’s SBM V2, what happens before the borrow matters too.
Here’s how to set up collateral on a Borrow Market.
1. Open JustLend DAO
Go to the JustLend app, select Borrow Markets, and connect your wallet.
2. Choose your market
Select the market based on the asset you want to borrow and the asset you want to use as collateral.
3. Check the market
Before proceeding, look through the market information, including the Borrow Rate, available liquidity, utilization and LLTV.
These parameters give you an idea of the current conditions of that market.
4. Choose your collateral
In the Borrow/Collateralize section, select the collateral asset and enter the amount you want to use.
5. Click “Collateralize”
Review the details and submit the transaction.
6. Confirm in your wallet
Approve the transaction and wait for it to be confirmed.
Once it goes through, the collateral is added to your position.
That’s the entire process shown in the video.
And this is the part that connects to JustLend DAO’s recent post:
Borrowing puts available liquidity to work, while market utilization helps shape the lending conditions for both borrowers and suppliers.
So before thinking about the amount you want to borrow, understand the market and make sure your collateral is properly set up.
The video below shows exactly how I did it on SBM V2.
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