Multiply exposure to HODL assets

If you want to HOLD certain assets and increase exposure to that asset, you can mint Acala Dollar using this HODL asset as collateral, then purchase more of this HODL asset on the open market.

How to multiply exposure to a collateral asset

  • Connect your wallet that has assets that you plan to use as collateral e.g. if you want to multiply DOT exposure, use a wallet that has DOT

  • Bridge the collateral assets to Acala or Karura network if they are not already on the respective networks (to bridge DOT ecosystem assets use this guide, to bridge KSM ecosystem assets use this guide)

  • Select a collateral asset type

  • Enter the amount of collateral you'd want to deposit

  • Enter the amount of Acala Dollar that you would like to borrow. Note the stability fee, required collateral ratio, min required to mint, liquidation price etc risk parameters are in line with your risk expectations

  • Then confirm the transaction, and expect Acala Dollar be in your wallet

  • Go to an exchange of your choice e.g. AcalaSwap

  • Choose a trading pair between Acala Dollar and the collateral asset used e.g. DOT/aUSD, and swap aUSD for DOT

  • Navigate back to the Acala Dollar main page, and click on Manage for the particular loan

  • Under the Collateral tab, deposit more collateral asset into the vault and confirm

  • Now you have additional exposure to the particular collateral asset

  • You can repeat this process until you are satisfied with the exposure multiples and of course, be mindful of the changing collateral ratio and Liquidation Price, which does imply higher risks

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