How to repay?
Repaying loans and settling debts
Last updated
Repaying loans and settling debts
Last updated
To repay any outstanding loan the fastest and easiest way is to navigate to the web interface (dApp). Select the assets you wish to repay, the amount and submit the transaction.
A debt position can only be settled with the borrowed asset, thus a user must ensure that the correct asset is used for repayment. There is no fixed time period to repay a loan as long as the collateral position does not drop below a Health Factor of 1.
Note that accrued interest of the debt gradually decreases the Health Factor, potentially leading to liquidation.
Most repay instances on the user application triggers the Chain Abstracted Liquidity Widget interface, where major protocol features are displayed.
To learn how to connect your wallet and selecting a network please either refer to How to supply? or How to borrow?
Users wishing to repay their debt positions must do so with the same asset they borrowed with. The Dashboard page offers users an interface to manage their collateral and debt positions.
In order to repay, a user can click on the repay button on the borrows section, this will trigger the Liquidity Widget to the Repay tab with the assets selected for repayment.
Enter the amount you want to repay then click repay. This will prompt your browser wallet to approve and/or submit the transaction, after the final check you can submit and a few moments later you have repaid for that amount the debt.
After your transaction has reached finality, the dashboard will display the information accordingly.
Replete allows users to repay their debts for any connected chain as long as the same assets are used that were borrowed. On occasions this requires bridging, which can lead to excess tokens being supplied to settle the debt.
The standard function for excess tokens in this scenario is to supply to the protocol. User wishing to withdraw the excess tokens or collateral after settling the debt, can do so with a withdraw transaction.
The excess tokens in the meantime accrues yield in the form of interest and influences the Health Factor. A strong Health Factor brings flexibility by decreasing the likelihood of liquidation and improving borrow capacity.
If you are well versed in web3, you can also toggle the settings button to have additional features to write and execute the contracts.
Utilize the tooltips to get a better understanding of what they do. Some settings are best left as is, as they can result in the loss of funds if they are not properly used.
