Beginner Tutorial
How to Earn Interest and Borrow Crypto Assets (Arbitrum Mainnet)
Abstract
Currently, Dank Protocol is only deployed on Arbitrum network and it’s open-source, immutable, and accessible by any Ethereum account. However, decentralized protocols are hard to use for most of people and here is a friendly guide for a better understanding.
For a more technical understanding of what’s happening under the hood, please see our protocol Documentation.
About Wallet
First of all, you are required to have a Web3-compatible Ethereum wallet. These wallets secure the private keys to your crypto and enable you to authorize transactions, and view balances on the Ethereum blockchain.
Making sure that your wallet contains at least 0.05 Ether. This is required to create Ethereum transactions.
If you don’t have an Ethereum wallet yet, MetaMask is a user-friendly browser extension that stores an Ethereum wallet.
*The below example is provided with using MetaMask.
How to connect a wallet
Luanch https://app.dank-protocol.com/
If you haven’t connect to a wallet, you will be asked to connect one.
If the pop-up windows didn’t show up, you need to click on the ‘Connect Wallet’ button manually.
Then, Choose the account you want to connect & click on ‘Next’ button.
Click ‘Connect’ button to connect your account with https://app.dank-protocol.com
After connecting your wallet, your Ethereum address will appear in top right corner of the screen and make sure the account address is match.
The Dank Dashboard
The top of the screen displays the value of your Supply Balance and Borrow Balance; at first, both of these will be $0.
On the left-hand side are Supply Markets; these are assets you can supply to Dank to earn interest. On the right-hand side are Borrow Markets; these are assets you can borrow from Dank.
How to supply assets to earn interests & DANK
At first, click on the asset that you want to supply.
A pop-up window will appear with displaying the Supply APY (amount of token/year) and the Distribution APY (amount of DANK/year).
Before you can supply assets, you are required to Enable it first. Click on Enable and Confirm the transaction. This will allow the Dank Protocol to interact with the asset in your wallet.
To supply an asset, type the wanted amount at the top of the pop-up window. Your wallet balance is showing at the bottom of the pop-up window, and you are able to enter with the ‘MAX’ button. Click Supply, and submit the transaction.
Monitoring your Income
Assets are supplied directly from your Ethereum wallet into Dank, and immediately begin earning interest.
Interest accrues directly to your Supply balance; you won’t see Ethereum transactions, or distributions — but your balance and Earned column will slowly increase over time.
How to Claim DANK
You can see your DANK balance in the top-right of the Dashboard, once your assets are supplied into Dank. Click the number, and a pop-up window will appear. In order to collect your earned DANK, click Claim, and submit the transaction.
How to Withdraw Assets
At any time, you can Withdraw any portion of your balance back to your Ethereum wallet. Press the of column of the wanted withdraw asset and switch to Withdraw section. Then, type in the wanted amount and click on the ‘Withdraw’ button for submitting the transaction.
How to Borrow Assets
The Dank protocol allows users to borrow any supported asset by using the supplied assets as Collateral. In order to use the supported asset as collateral, press the toggle on the right side of the supported asset; a pop-up which displays Borrow Limit, Borrow Limit Used and a button of Use as Collateral; press the button and submit the transaction.
Liquidation
The Borrow Limit is the maximum value of assets that you can borrow from the protocol. At the top of the Dashboard, a meter is displayed, tracking what portion of your Borrow Limit you’ve used.
If this meter reaches ≥100%, your account will be partially liquidated. This can occur when collateral declines in value, or borrowed assets increase in value.
If your account is in liquidation, a liquidator can repay up to 50% of your outstanding borrowed assets. The liquidator will receive a proportionate amount of your collateral, at a 8.0% discount, as a liquidation incentive.
Therefore, you should check your account liquidity regularly, in case a liquidation occurred.
Borrow Assets
- First, click on the asset that you’d like to Borrow.
- A pop-up will appear, displaying the Borrow APY (amount of token/year) you’ll pay, and the Distribution APY (amount of DANK/year) you’ll earn by Borrowing the asset.
- To Borrow an asset, type the quantity you’d like to borrow at the top of the pop-up. For convenience, the 80% LIMIT button will borrow up to 80% of your Borrow Limit. The impact on your Borrow Limit meter will be displayed.
- Click Borrow, and submit the transaction.
Dank Markets
An overview of each Dank market is available in real-time at https://dank-protocol.com/#/markets
More Questions
Review the https://dank-protocol.gitbook.io/docs/faq
Join the Dank Discord community or Dank community sever in Telegram!