# Borrowing on Moonwell

By [Lynn Brooke](https://paragraph.com/@lynnbrooke) · 2024-09-13

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Borrowing on Moonwell allows users to take out over-collateralized loans by **using supplied assets as collateral**. This guide will help you navigate the borrowing process on Moonwell.

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

![](https://storage.googleapis.com/papyrus_images/2cd899e24d4da2f6ee4b33efaf30144edb2d9dd646ea102e9b0a9b029f60ae15.jpg)

**What you need:**

*   **Wallet**: make sure your wallet is connected.
    
*   **Supplied assets:** you must have supplied one or more assets to Moonwell (see the article “[Lending on Moonwell](https://mirror.xyz/lynnbrooke.eth/LuGtV6DoE4mP5hYZkNazzYOw-ytoL2uM-nprwDOncbA)” to learn how).
    
*   **Collateral enabled:** ensure that your supplied assets are enabled as collateral (explained below).
    

**Enabling assets as collateral:**

**1)Access collateral settings:** go to the “_Lend_” section from the main menu.

![](https://storage.googleapis.com/papyrus_images/1ab45f875db16a5be68dae338bf698d1732c23b13f5c7777839daea973ece6d9.png)

**2)Select asset:** choose the asset you want to enable as collateral from the dropdown menu in the “_Supply_” modal.

![](https://storage.googleapis.com/papyrus_images/995cba2ae58d03098dad9a598004d536b3f7f69cff728f3b1719b31bc2d506e1.png)

**3)Enable collateral:** under the “_Supply_” modal, locate the “_Enable as Collateral_” option. Select “_Yes_” and confirm by clicking the “_Confirm_” button. Approve the transaction in your wallet.

![](https://storage.googleapis.com/papyrus_images/228cb2e1ef03f3cd70ce1f2046b475385691356e9c0408dc642712bbbcbd7217.gif)

**Selecting an asset to borrow:**

*   It’s important to note that **collateral must be enabled on the same network from which you want to borrow**. Borrowing across networks is not supported, so ensure your collateral is set correctly.
    
*   For protocol stability, Moonwell **does not allow recursive borrowing**, meaning you cannot borrow the same asset you have supplied.
    

**Option A: Using the Borrow menu**

**1)Navigate to Borrow:** select “_Borrow_” from the top menu.

![](https://storage.googleapis.com/papyrus_images/976e054d1af9683d6a93cb15263e540e7490c642e624eaca73facf8ace6502bf.png)

**2)Choose asset:** from the “_Borrow_” modal, select the asset you want to borrow.

![](https://storage.googleapis.com/papyrus_images/b314007be71aebaa22bd71ca628282b27eca53641af6e33204852f2fb39f2654.png)

**Option B: Using the Markets menu**

**1)Navigate to Markets:** select “_Markets_” from the top menu.

![](https://storage.googleapis.com/papyrus_images/bbd39725cefdcb9989726731996ea6568bc5207337409030b5692b6fdb3d466a.png)

**2)Borrow option:** click on “_Borrow_” next to the asset you want to borrow.

![](https://storage.googleapis.com/papyrus_images/5eb4f9008947d826d8b69232a823540ee3ab191d28e7c5c03726e54b0e2ad839.png)

**Completing the Borrow transaction:**

**1)Enter amount:** in the “_Borrow_” modal, input the amount you want to borrow.

![](https://storage.googleapis.com/papyrus_images/51ffb3314266a9c7037c8a34a733881ecdc7d44f199141aa31115d32b5eb4b0d.gif)

**2)Review and confirm:** click on the “_Borrow_” button, review the transaction details, and ensure you keep an eye on your credit limit. Click “_Confirm Borrow_” and approve the transaction in your wallet.

![](https://storage.googleapis.com/papyrus_images/f99747f46a53c84025338fd0972ff58d7629ae3dc4af5050d50e6e23bf32b058.png)

![](https://storage.googleapis.com/papyrus_images/201cca3ecaf119ac311e6972a17d55ffad805de2068a935fc97a685be388fc0e.png)

**3)Check % Credit Remaining:** monitor the “% Credit Remaining” bar, which shows your total borrowed amount versus available credit, helping you managing your borrowing limits effectively.

![](https://storage.googleapis.com/papyrus_images/0111c27e1822e821ff7f2646c1d9322600b032e78e5e50153f3c46e19f056bc6.png)

**4)Receive assets:** once the transaction is confirmed, the borrowed assets will be sent directly to your wallet.

![](https://storage.googleapis.com/papyrus_images/48244a13cb863316bb0c404d78463751b40347d28eb52d552d47014b83a51204.jpg)

This guide provides a straightforward approach to borrowing on Moonwell, allowing you to leverage your assets effectively across networks. For more detailed insights, be sure to explore our related articles on managing your borrowed positions.

_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/borrowing-on-moonwell)*