How to mint $MONEY
Creating a Loan
Last updated
Creating a Loan
Last updated
Loans are how $MONEY is created, also known as "minting". Creating a loan through defi.money is easy and completely permissionless. It can be simplified into two basic steps:
Deposit some collateral (think WBTC, ETH etc.)
Decide how much $MONEY to borrow
The user interface will guide you every step of the way, showing how much $MONEY it is possible to borrow and what the risk levels would be depending on the amount, ensuring that you are fully informed and comfortable.
Below is a detailed tutorial that will guide you through the process with a basic example.
The defi.money app can be found here: https://app.defi.money
Start by going to the MARKETS page. From here you can browse the markets on all supported networks, even without connecting your wallet first, by using the network buttons:
Note that the some assets are not necessarily supported on all networks, so you might need to change to a network that supports the asset you want to use.
When you know which market you want to use and on which network, connect your wallet in the top right corner, and it will prompt you to connect to the correct network in your wallet if you aren't already. Then hover over the market you wish to use, and click on the CREATE LOAN button that appears. In this example, we will be creating a loan using $WETH.
The Create loan page is where you will be able to create a loan and mint new $MONEY.
There are only 2 input fields you need to worry about as a user, the rest is information to help you out. The DEPOSIT input field is where you enter the amount of collateral you wish to deposit. That is the amount of collateral you would send from your wallet into the smart contract. The MINT $MONEY input field is where you enter the amount of $MONEY you wish to mint/take a loan of. Below these fields you should be able to see how much is in your wallet that you can deposit, and when entering some amount, below the MINT $MONEY field you will see what the max amount you could borrow is.
When you have the DEPOSIT and MINT fields filled in, the page should look something like this:
In this example, we are depositing 10 $ETH (out of 400 available), and minting 15000 $MONEY (out of ~29000 maximally allowed at that time). This would be a relatively low risk loan. You will notice two things on the page to help you out. The right side shows you a price chart of the selected collateral token, in this case $WETH, which will help visualize what the price has been historically and is currently. On the left side below the input fields is something called the
CONVERSION RANGE. That shows you in what price range your collateral would start getting converted if the price of the collateral falls into that range. That range is also displayed in the price chart in green color in this case (would be yellow or red if it was more risky). The lower this price range is relative to the current price of the collateral, the less risky the loan is.
When you have set the amounts you wish to deposit and mint, you click the APPROVE button, which will trigger a transaction where you give permission to deposit that amount of collateral to the smart contract that manages your loan.
When your approval transaction is confirmed, the button changes to GET $MONEY, which you click to initiate the transaction to get your $MONEY tokens into your wallet.
As soon as the transaction is confirmed, $MONEY is in your wallet. You will get a popup to prompt you to add the token into your wallet if it is your first time, but if you lose track of that you can always manually add $MONEY into your wallet, by clicking on "Import token" in your wallet and add the correct address for the token. The contract address for $MONEY is the same on all networks, you can find it here.
The page also changes as soon as the GET $MONEY transaction confirms, into the "Manage loan" page. From here you can adjust and close the loan at any time. It shows you how much collateral you have deposited, how much $MONEY you borrowed, current prices and more. You can at any time find this page by going to the MARKETS page and connecting your wallet to the same network as before.
Congratulations, you successfully minted new $MONEY!
If you wish to learn more about how the $MONEY protocol works, and understand risks and loan health, start here.
