HyperLoan Repayment

Loan repayment

Borrowers can repay their borrow position at any time. Repayment includes the principal amount borrowed plus the accrued interest.

Once the borrow position is fully repaid, the collateral is unlocked and can be transferred or withdrawn by the supplier.

Repayments can be made fully or partially by performing the following steps:

Step 1: Connect Wallet

To begin, press ‘Connect Wallet’ and select the Ethereum wallet provider corresponding to the wallet holding the tokens intended for repayment.

Step 2: Select Borrowed Token to Repay

Once connected, navigate to the ‘Dashboard’ and locate the ‘Your Borrowings’ section. This table lists the tokens you have borrowed. Choose the token you wish to repay.

Step 3: Approve Token Transfer (if necessary)

If repaying with a non-base token, you may need to approve the HyperLoan Pool smart contract to transfer tokens from your wallet. This approval is necessary for any repayment action that involves ERC-20 tokens. Approvals can be performed through a transaction (incurs a network fee) or a signature (does not incur a network fee).

Step 4: Confirm Repayment Transaction

Enter the repayment amount and confirm the transaction in your wallet. If repaying a base asset, the repayment process involves the WrappedTokenGateway contract, which unwraps the token and repays the borrowed amount in a single transaction.

Step 5: Monitor Collateral Health Factor

After the repayment is confirmed, your debt will decrease, and your health factor will improve. Fully repaying your borrow position will release your collateral, making it available for withdrawal or other uses. Regularly monitor your health factor and manage your borrow positions to reduce the risk of liquidation.