Atlendis Borrowing Tutorial Series: How to Use the Atlendis Protocol as a Borrower
by Manuel Gunzburger
Atlendis Borrowing Tutorial Series: How to Use the Atlendis Protocol as a Borrower
This tutorial series will explain how borrowers can start borrowing, repay, and manage their liquidity rewards and more on the Atlendis protocol.
Table of contents
- Welcome to Atlendis | How to get allowlisted and start borrowing
- How to repay on Atlendis
- How to add and manage liquidity rewards on Atlendis
- Late repay on Atlendis
- How to see your pool history, Status and Credit Evaluation
If you would rather watch the tutorials, here is a playlist of videos covering this article:
1. Welcome to Atlendis | How to get allowlisted and start borrowing
- First, the borrower will contact Atlendis (to provide specifics of their liquidity needs, use case, assets to borrow, etc.) at firstname.lastname@example.org or through the Atlendis Discord.
- The borrower will then go through the credit scoring process to become approved/whitelisted.
- Once the borrower is approved, Atlendis will open the borrower specific pool parameterized according to their needs.
- The Atlendis governance will finally authorize a dedicated borrower-controlled address for each pool. Borrowers can then access their pool(s) and “borrower admin” dashboard.
It is possible for borrowers to have more than one pool, however, a single wallet address can only access one pool, and the borrower has to log into the Atlendis dApp using the address approved for the specific pool they want to manage.
Let’s get started! From the Atlendis home page, borrowers can click on the “use dApp'' button in the upper right hand side of the page to go to app.atlendis.io and interact with the Atlendis protocol.
Borrowers wanting to borrow funds must first connect their supported wallet using the “Connect Wallet” button on the top right. In this example MetaMask’s wallet is used and connected to the Polygon network.
Now that you have been approved as a borrower, your pool is open, and your wallet has been connected, welcome to the Atlendis World!
Once connected to the dApp as a borrower, the main menu is presented on the left hand side of the dApp’s home page. The “borrower admin” section is only shown for borrowers, and the rest of the items on the left hand side are specific to Lenders. Here is what appears on the left hand side:
- Borrower admin: this is the dashboard for borrowers that will appear once a pool has been created, and this will show the pool specific to the connected address.
- Pools: this is an overview of all the pools open by different borrowers where Lenders can deposit funds to be borrowed.
- My dashboard: this enables Lenders to find all of the positions and they can see a range of metrics about their positions.
- History: this shows the history of your own past transactions or actions taken within the dApp.
- Docs: this links to the Atlendis documentation.
- FAQ: this links to the frequently asked questions.
Let’s start with the “Borrower admin” section:
In the “Borrower Admin” section, you can see the details and parameters of your pool. There are several tabs at the top of the page that show “Borrow,” “Repay,” “Add Reward,” and “Pool History,” to let you dive into more information about your pool.
Let’s go to the “Borrow” tab:
At the top of the page you can see the name of the pool, the "Amount Available" that you can borrow, the “Amount Pending”, the “Amount Borrowed”, and the “Maturity” of your loan. Next you can see the status of the pool along with the “Credit Limit,” “Reward Liquidity,“ and the “Cooldown Period,” which is the period after a loan has been repaid when you cannot take out another loan.
You can hover over the different elements to see more detailed information on the status of the pool.
When you are ready to borrow, go to “Enter amount to borrow” and enter the amount that you would like to borrow. You can borrow an amount up to your credit limit, and up to the amount available in the pool.
When you enter the amount to borrow, a preview of the borrowing rates is shown from the order book, that depends on the state of the order book.
You can see the “Rate Preview,” which is the borrowing rate that is calculated depending on the amount you want to borrow and the state of the order book.
Then you can see the “Remaining Amount” which is the amount that will be left in the pool after you borrow.
You will see the “Maturity” of the loan and the “Estimated Repay Start.”
The repayment period depends on the parameters of the pool (and can be seen in more detail in the “Repay” tab at the top).
When you hover over the bars in the order book, you can see what has been deposited into the pool, the borrowing rates, etc.
When you are ready to proceed and borrow, click “Borrow,” and confirm the transaction in your wallet. After the transaction is confirmed, the funds have been transferred to your wallet and the colors of the bars in the order book will change from green to light blue to confirm your successful borrow.
The status of the pool has now been changed to “Borrowed” (and the color has been changed to pink).
2. How to repay on Atlendis
We are logged into the Atlendis dApp as a borrower with the correct wallet address for this pool, and have clicked on the “Repay” tab. Here at the top of the page you can see the name of the pool, the “amount available“ that you can borrow, the “amount pending,” the “amount borrowed,” and the “maturity” of your loan.
Next you can see the status of the pool, with the “Credit Limit,” “Reward Liquidity,“ and the “Cooldown Period,” which is the period after a loan has been repaid during which you cannot take out another loan.
Under “Repay your loan” you can see the following information, as per the loan agreement terms:
- Repay starts: this is the date that you can start to repay your loan.
- Repay ends: the date at when the repayment period ends.
- Borrow rate: the rate at which the funds have been borrowed.
- Amount borrowed: the amount that has been borrowed.
- Late fees: any late fees that are applicable.
- Interest: the interest fees that are paid to liquidity providers.
- Atlendis fee: the service fees that are paid to Atlendis to use the protocol.
- Repay total: the total amount to be repaid.
To repay the balance of your loan, click on the “Approve” button. This will enable you to approve the spending transaction from your wallet and repay the loan.
Once the loan has been repaid, the pool then enters the Cooldown state. The cool down period is the minimum period of time that must be respected between two borrows, in order to let liquidity providers move their liquidity out of the pool if needed. The length of the cool down period is a parameter of the pool that is fixed upon its opening. Note that if you repay after the repayment period ends, your pool will enter an overdue status, and will start accruing late repay fees for the lenders. When you repay a pool in an overdue status, the event will appear in the history as such. By repaying your loans on time, borrowers contribute to building a solid credit history for their organization.
3. How to add and manage liquidity rewards on Atlendis
Adding liquidity rewards is a way to incentivize and reward liquidity providers for providing borrowable liquidity into your pool.
Liquidity fees are paid by the borrower and distributed as liquidity rewards to liquidity providers when their capital is not actively loaned out. The liquidity fees are only paid on unused capital, meaning that if the borrower borrows the totality of their authorized capacity, they will not pay liquidity fees until repayment.
From the “Add Reward” tab, you can see the “Current State of Reserve” with a high level view of:
- The Reserve, which is the total amount of tokens that the borrower has deposited to be distributed to lenders.
- The Reward APY, which is the current apy at which the lenders that provide liquidity are rewarded.
- The End of Reserve, which is the approximate date at which rewards will end, depending on the reserve left and current reward apy.
On the left hand side under “Add Liquidity Rewards” you can:
This is where you can add liquidity rewards to incentivize the pool. You can see:
- “Increase Reserve,” which allows you to increase rewards either by days or by amount.
- The Reward APY, which can be changed up to the governance
- The End of reserve, which is calculated depending on the state of the order book.
On the right hand side of the screen you can see a visual overview of the:
The Liquidity barometer is a set of data that shows you metrics to help you manage and reach your liquidity goals, including:
- Pool TVL
- Credit limit
- Time since pool creation
- All time loans
At the bottom of the screen you can see the:
That shows indicators for 1 week, 1 month and 6 months.
4. Late repay on Atlendis
When a borrower logs onto the dApp and sees the status as overdue, this means that the loan has not been repaid on time and the borrower is incurring late repayment fees.
The rate of the late repayment fees occurring is defined by the governance in the parameters of the pool at its creation.
The borrower is now prompted to repay the loan with the additional fees incurred.
A late repayment event is reported in the borrower’s credit history score.
If there is no repayment of the loan and late fees, the governance can decide to default the pool. This means that the pool will be closed and the borrower’s access to the platform revoked.
As per the contract signed with the borrower at the creation of the pool, legal action will be taken.
5. How to see your pool history, Status and Credit Evaluation
Let’s go to the “pool history tab.”
This view shows the history of your pool and all the actions that have been taken, including how much has been borrowed, repaid, and you can see if you have added liquidity rewards.
You can also see:
- The number of lenders
- The pool TVL
- The Governance history - when governance created pool
- The allowed borrowing address
If you have any further question, feel free to reach out to the Atlendis Labs team and the Atlendis community on Discord.
Atlendis is a capital-efficient DeFi lending protocol that enables uncollateralized crypto loans. Institutional borrowers can obtain flexible and competitive loan terms. Uncollateralized loans function as a revolving line of credit, giving borrowers flexibility for recurrent and short term liquidity needs. Lenders earn high returns on actively loaned out capital and have granular control over their investment portfolios. Unused capital is placed on a trusted third-party liquidity protocol, while simultaneously earning additional returns from Atlendis. There is no idle capital on Atlendis. Atlendis enables trusted borrowing and lending, opening a wide range of use cases for borrowers.
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Community & Growth Lead
Manuel is the Community and Growth Lead at Atlendis Labs, the organization behind the decentralized credit protocol Atlendis. Manuel studied math and finance, discovered Bitcoin in 2013, and then started closely following blockchain technology. After working for N26 Bank in Berlin, Manuel finally took the leap in 2021 to join Atlendis Labs. Manuel brings a curious and communicative mindset to help popularize the technology behind Atlendis and grow the community.