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How to Activate Concrete Borrow (Default Lite)

Concrete Borrow (Lite)​

Concrete Borrow (Lite) is the foundational borrowing solution in the Concrete ecosystem, providing users with a streamlined experience and default protection against liquidation.

By default, Concrete Borrow comes with Concrete Lite, which forecloses loans early, reducing the risk of liquidation penalties:

  • Early Foreclosure: If the Loan-to-Value (LTV) ratio approaches the liquidation threshold, Concrete Lite triggers an early foreclosure, avoiding traditional liquidation.
  • Reduced Fees: This process incurs a 3.5% foreclosure fee, significantly lower than typical market liquidation penalties (5%-15%).
  • No Activation Fee: Concrete Borrow (Lite) is active by default, with no upfront costs.
  • Gas Fee Subsidy: Borrowers receive partial coverage for gas fees when taking out loans through Concrete.

Managing Concrete Borrow (Lite)​

  1. View Loan Overview:

    • The loan dashboard shows the current LTV, liquidation threshold, and the status of Concrete Lite.

  2. Enable or Disable Protection:

    • Users can choose to disable the default protection by toggling the disable button next to the Concrete Lite status.
    • If disabled, users are fully exposed to the underlying market’s liquidation penalties.

Loan Overview Details​

  1. LTV (Loan-to-Value):

    • Displays the percentage of the loan amount relative to the value of the collateral.
    • In this case, the LTV is 51.23%, indicating the health of the position.

  2. Loan Health:

    • A visual bar showing the current health status of the loan.
    • As marked "Healthy," it shows that the loan is far from the liquidation threshold.

  3. Liquidation LTV & Price:

    • Liquidation LTV: 80.80%, representing the point at which liquidation occurs.
    • Liquidation Price: $1,547.89, the collateral value at which liquidation would be triggered.

  4. Current Collateral Price:

    • The market price of the collateralized asset, $2,443.85.

  5. Concrete Lite Status:

    • Active status indicates automatic foreclosure protection is enabled.
    • Reduces liquidation penalties by performing a controlled foreclosure before full liquidation occurs, minimizing user losses.

Loan Details​

  1. Amount Supplied & Supplied Value:

    • Indicates the user deposited 119.928 WETH, valued at $292,811.70.

  2. Total Debt & Net APR:

    • Displays the current outstanding loan value ($149,993.45) and the applied interest rate (13.59% Net APR).

  3. History Section:

    • A record of all loan-related actions, including:
      • Initial Borrow: User borrowed $150,000 USDC.
      • Subscribe Protection: Protection Status.
      • Cancel Protection: Shows attempts to deactivate protection.