DeFi Days Spotlight: How to lend & borrow with Ajna

DeFi Days is cooking now with 25k active participants! RARI rolled out this eight-week presentation of ecosystem partner missions to help onboard the NFT community into alternative earning opportunities via DeFi, and one of the most exciting opportunities comes from lending and borrowing with Ajna.

If you're new to DeFi, this may seem intimidating, so we've provided this step-by-step guide to getting you started. Wrapped up in this opportunity is your chance to earn native yield while lending on Ajna. you'll enter the leaderboard race where the top 33% of lenders will share an $8k prize pool!

Lending Assets on Ajna

Step 1: Set Up Your Wallet

1. Install a Wallet: Download and install a Web3-compatible wallet like Zerion (which, by the way, also has it's own rewards).

2. Add RARI Chain:

   • Go to your wallet settings.

   • Add a custom network using the following details:

     • Network Name : RARI Chain

     • RPC URL : https://mainnet.rpc.rarichain.org/http

     • Chain ID : 1380012617

     • Currency (note that the curency is ETH, not $RARI!) : ETH

     • Block Explorer URL : https://mainnet.explorer.rarichain.org/

   • Save the network and switch to RARI Chain.

3. Fund Your Wallet: Deposit assets supported on RARI Chain into your wallet.

Step 2: Access and Learn about Ajna Finance

1. Open your secure browser and go to Ajnafi.com.

2. Connect your wallet:

   • Click "Connect Wallet."

   • Select your preferred wallet.

   • Approve the connection on your wallet interface.

3. Navigate to Ajna’s FAQs to read about the nuances of lending on the protocol (like how to select a price bucket)

Step 3: Navigate to the Lending Section

1. On the Ajna dashboard, locate and select the "Lend" option.

2. Browse available pools:

   • Choose the lending pool corresponding to the asset you want to lend.

   • Pools are typically displayed as collateral token/quote token (eg. WETH/USDC.e)

Step 4: Deposit Assets

1. Select the pool you want to lend to.

2. Enter the amount of the asset you wish to lend.

3. Select a price bucket (Should be a price lower than the market price of 1 unit of collateral, here’s a guide)

4. Approve and execute the transaction:

   • Click "Approve" to allow Ajna Finance to access your tokens.

   • Confirm the transaction in your wallet.

5. Deposit the assets:

   • Click "Deposit" and confirm the transaction in your wallet.

Step 5: Monitor Your Position

1. After lending, your assets will start accruing interest based on the pool's borrowing activity.

2. Visit the "My Positions" section to track:

   • The amount lent.

   • Accrued interest.

   • Pool health metrics.

3. Remember to adjust your deposit if the collateral asset declines in price. (If the price crosses your deposit’s price bucket a trade may occur, resulting in your purchase of the collateral token.)

Step 6: Withdraw Funds (Optional)

1. To withdraw your funds:

   • Navigate to the pool where you have lent assets.

   • Click "Withdraw" and specify the amount.

   • Confirm the transaction in your wallet.

2. Your funds and earned interest will be sent to your wallet.

3. If your funds are unavailable to withdraw, try pushing the interest rate up to attract more lender deposits and to incentivize borrowers to pay back some of their debt.

   • Navigate to the pool

   • Click “Manage Pool”

   • Click “Update Interest Rate”

   • Approve and execute the transaction:

     1. Click "Approve" to allow Ajna Finance to access your tokens.

     2. Confirm the transaction in your wallet.

Step 7: Connect Your Wallet to Superboard

1. Go to the DeFi Days Superboard page

2. Connect your wallet:

• Click "Connect Wallet."

• Select your preferred wallet (use the same one connected to Ajna).

• Approve the connection on your wallet interface.

Connecting your wallet to the Superboard Quest page adds you to the leaderboard and reward pool (where eligible).

Borrowing Assets on Ajna

Step 1: Set Up Your Wallet

• Follow the same wallet setup and funding steps as described for lending.

Step 2: Choose a Borrowing Pool

• On Ajnafi.combrowse pools to find the one corresponding to the asset you wish to borrow.

• Check the pool’s collateralization requirements, interest rates, and available liquidity.

Step 3: Supply Collateral and Borrow Tokens

• Select the pool and click "Borrow"

• Enter the amount of collateral to pledge and the borrow amount.

• Take note of your liquidation price and the other metrics of your loan.

• Approve and execute the transaction:

• Click "Approve" to allow Ajna Finance to access your tokens.

• Confirm the transaction in your wallet.

Step 4: Manage Your Position

• Use the "My Positions" dashboard to monitor:

  • Liquidation Price

  • Total Debt Amount

  • Current Interest Rate

  • And More

Step 6: Repay the Loan

• To repay:

  • Navigate to the pool and click "Repay."

  • Enter the amount to repay and the amount of collateral to withdraw

  • Approve and execute the transaction:

    • Click "Approve" to allow Ajna Finance to access your tokens.

    • Confirm the transaction in your wallet.

Step 7: Connect Your Wallet to Superboard

1. Go to the DeFi Days Superboard page

2. Connect your wallet:

• Click "Connect Wallet."

• Select your preferred wallet (use the same one connected to Ajna).

• Approve the connection on your wallet interface.

Connecting your wallet to the Superboard Quest page adds you to the leaderboard and reward pool (where eligible).

Risks to Consider

• Deposit Availability (Lenders):

  • Under certain conditions your deposit may be unavailable to withdraw in part or in full.

• Liquidation Risk (Borrowers):

  • If your collateral value falls below the required threshold, it can be liquidated.

• Volatility Risk:

  • Asset prices can fluctuate, affecting both lenders and borrowers.

• Interest Rate Risk:

  • Ajna’s interest rates are variable, and may potentially change.

• Smart Contract Risk:

• Ajna Finance operates on decentralized smart contracts, which can be vulnerable to exploits.

• Protocol-Specific Risks:

  • RARI Chain and Ajna Finance are permissionless systems that depend on user interactions. Always verify pool parameters and terms.

FAQs

• For a full list of FAQs visit https://faqs.ajna.finance/

• What assets can I use as collateral? Ajna Finance supports any ERC 20 and ERC 721 tokens.

• How are interest rates determined? Interest rates are dynamically set based on pool utilization and supply/demand and can change maximum once per 12 hours.

• What happens if I can’t repay a loan? If your position falls below the liquidation threshold, part or all of your collateral may be liquidated to cover the loan.

• Can I lend and borrow simultaneously? Yes, users can participate as both lenders and borrowers.

• Are there fees? Ajna charges minimal protocol fees for transactions, which vary by pool. For a full breakdown visit the official FAQs above.

• How secure is Ajna Finance? Ajna’s contracts have been heavily audited, but users should always exercise caution when interacting with DeFi platforms.

• What are the DeFi Days rewards associated with lending and borrowing on Ajna?The top 33% of Lenders ranked by the TVL will be eligible to share an approximately $8k prize pool of $RARI and $AJNA. Borrowers will be eligible to receive an NFT; DeFi Days NFTs are collected to enter a separate leaderboard race ranked by NFTs collected, total transactions, and the quality of transactions. The top 20 from this leaderboard will be eligible to share a $10k prize pool.

• Where can I get support?For support on Ajna, join their Discord server: https://discord.com/invite/T9WSMKfMYJ

Always remember to Do Your Own Research. Welcome to the world of DeFi!