# How to Borrow on CapyFi


By [CapyFi](https://paragraph.com/@capyfi-protocol) · 2025-05-16

---

**Borrowing Made Easy on CapyFi**

CapyFi allows anyone to take out overcollateralized loans using stablecoins like USDC and USDT and other tokens like ETH. Whether you need short-term liquidity or want to leverage your assets, borrowing with CapyFi is simple and secure.

### **Why borrow?**

*   Access liquidity without selling your assets
    
*   Use borrowed funds in other DeFi apps
    
*   Leverage your positions
    

### **How to borrow in a few steps:**

1.  **Connect your wallet** on app.capyfi.com.
    
2.  **Deposit collateral:** Choose a supported token (e.g., USDC or USDT) and lock it into the protocol.
    
3.  **Borrow:** Select the amount you want to borrow based on your collateral ratio.
    
4.  **Manage your position:** Keep an eye on your health factor to avoid liquidation.
    

### **⚠️ Remember:**

If your collateral drops in value or your position becomes undercollateralized, you could be liquidated. Borrow responsibly.

---

*Originally published on [CapyFi](https://paragraph.com/@capyfi-protocol/how-to-borrow-on-capyfi)*