# Borrow on Silo Finance

By [Lynn Brooke](https://paragraph.com/@lynnbrooke) · 2024-10-11

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Borrowing on Silo Finance allows you to take out a loan from a lending market using your deposited assets as collateral. **You must first be a lender before borrowing, as you need collateral to borrow against**. This guide will walk you through how to borrow on Silo Finance.

**What you will find in this article:**

![](https://storage.googleapis.com/papyrus_images/2b7dc0abe820729322a1d599de356b276295d75548b60f76a2de853cf2b32d96.jpg)

**What do you need:**

*   A connected **wallet**.
    
*   **Deposited assets** on Silo Finance (if you haven’t deposited yet, check out [my article on how to do so](https://mirror.xyz/lynnbrooke.eth/VmGIuVz2CCBrnIaX7luGVjv9Bgiim6GKfhqjxyI_Nnw)).
    

**How to Borrow:**

**1)Access the dApp**: go to [app.silo.finance](https://app.silo.finance/) .

![](https://storage.googleapis.com/papyrus_images/26e1938b160ca048869ee341ea2d5cc9f0f1cbad9a5507e45b76fb0311cea7c1.png)

**2)Connect your wallet:** in the top-right corner, click “_Connect Wallet_” and select your wallet provider.

![](https://storage.googleapis.com/papyrus_images/7bb76a11f1ffeeb63bc117c8f87a8b5d441b5792b239c522ccc48ca4d103943b.png)

**3)Select your Silo deployment**: use the drop-down menu in the top-right corner to choose the network of market you wish to operate on.

![](https://storage.googleapis.com/papyrus_images/88f1f0b3710b9e0d511e61e646d318d02e08b041ef42eedb5e1e855e734bea28.png)

**4)Access your Market:**

*   **Option A**: go to “_Markets_” and select the market you deposited into. this will take you to the market page where you can manage your position (_Deposit - Borrow - Withdraw - Repay_).
    

![](https://storage.googleapis.com/papyrus_images/e257e2462f8f10bf1fd400a95a3be900e1a0e7338432deea4110ce6a3a8d4012.png)

![](https://storage.googleapis.com/papyrus_images/33e9aeec6fa2e8366e303333519e115a174373084db2dd89c6d8c70a82f86ed7.png)

![](https://storage.googleapis.com/papyrus_images/b5051910415c4312185980956968f4793ed242c570d09f581f147a7e991a159e.png)

*   **Option B**: from the top navigation bar. click “_Dashboard_”. Here, you will find your open positions with management options.
    

![](https://storage.googleapis.com/papyrus_images/7b46d6eb3a8c1d599a350a4740a400e9a6dbccb94388797064974b1b1f3f5fbc.png)

![](https://storage.googleapis.com/papyrus_images/84f05c28f0e1c4a400e687d601398329675a86670ffc86345121bf65ac613895.png)

**5)Borrow assets:**

*   Click the “**Borrow**” option for the market you wish to borrow from.
    
*   Select the asset you wish to borrow from the drop-down menu.
    

![💡Note: you can only borrow the two assets you haven’t deposited.](https://storage.googleapis.com/papyrus_images/bbe44cf1339762fd5c476e685536cbcd2a72c5610c7d365aff9b3af98f47ac7f.png)

💡Note: you can only borrow the two assets you haven’t deposited.

*   Enter the amount you want to borrow or click “_MAX_” to borrow the full amount available.
    

![💡Minimum borrowing: the minimum borrowing amount is $50. Ensure that your deposit covers the collateral requirement (i.e., with a Max LTV of 80%, you would need at least $62.50 deposited to borrow $50).](https://storage.googleapis.com/papyrus_images/4e84ae5f0669430fb4f049dcab7059ad1c7b7bdac868cdccf7905dbe7076222f.gif)

💡Minimum borrowing: the minimum borrowing amount is $50. Ensure that your deposit covers the collateral requirement (i.e., with a Max LTV of 80%, you would need at least $62.50 deposited to borrow $50).

![](https://storage.googleapis.com/papyrus_images/7c1915da3e4facb1a2b62867dc5bd3ec156f3b1d83ad3c3dc8fc5bffeb64c7d2.gif)

*   You will see borrow information like the amount available to borrow (based on the Max LTV of the market) and your health factor based on the amount borrowed.
    
    *   **💡Max LTV**: this represents the maximum amount you can borrow against your collateral and it is expressed as a percentage. _For example, if the Max LTV is 80%, you can borrow up to 80% of your collateral’s value._
        
    *   **💡Health Factor**: a ratio that indicates how close a position is to being liquidated. A Health Factor of 0% means the position may be signaled for liquidation, so the closer it is to 0%, the higher the risk of liquidation.
        

**6)Confirm borrowing**: if you are happy with the amount and the health factor, click “_Borrow_” and confirm the transaction in your wallet.

![](https://storage.googleapis.com/papyrus_images/a073324223fe8ccb5e263c7623a748d5bc3caebaffe8fa5033341475dec3d7b7.png)

**7)Congratulations, you have successfully borrowed from Silo!** Your borrowed assets will appear in your wallet.

![](https://storage.googleapis.com/papyrus_images/3da98bb95cc498d2fd8bc8e5d06185b7c93b0c75e7046f7216ff4bca1c5c05d1.png)

**8)Review information:** an updated information box about your deposit with the new borrow details will be shown on the right side of the dashboard.

![](https://storage.googleapis.com/papyrus_images/4a4414c0f1050c4ef691c14d90a7fc80f8962311d40226a0bca24c4d9448dd5f.png)

By following these steps you can successfully borrow assets on Silo Finance. After borrowing, make sure to monitor your health factor to ensure your position remains safe from liquidation.

_Lynn Brooke_

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_This article serves educational purposes and is not financial advice. We encourage you to do your own research and be responsible for your actions in the financial space._

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*Originally published on [Lynn Brooke](https://paragraph.com/@lynnbrooke/borrow-on-silo-finance)*