Nimbora x Pendle x Etherfi

Liquity is an interest-free borrowing protocol on Ethereum which launched in April 2021.

Since then it has issued more than $4.5b in loans to thousands of users. The protocol is fully immutable, has no governance and a network of decentralized frontends.

It is highly secure, has several audits, and tops Defi Safety’s security list.

Website | Docs | Analytics | Liquity on Twitter

Nimbora is a platform that offers you the opportunity to interact with your favorite Layer 1 (L1) protocols at a fraction of the cost of Layer 2 (L2) solutions.

Click here to connect your wallet.

You can learn more about Nimbora by follow us on Medium, Twitter, or join our Telegram group.

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Benefits of using L2 through Nimbora vs. using L1

• It’s much cheaper: you pay 3x-7x less gas fees compared to mainnet
• There is no minimum loan: on the mainnet you have to borrow at least 2’000 LUSD
• You can adjust your loan frequently: due to lower gas cost, you can manage your loan better
• Starknet ecosystem: take advantage of LUSD integrations across several protocols, at a fraction of the mainnet cost

From the Nimbora website, you will be able to interact with the best Ethereum protocols at a low cost. For this example let’s see how we can borrow and repay LUSD stablecoin.

Once you click on the “CONNECT” button, you will be redirected to https://www.app.nimbora.io/

In the section Pooling, there are 2 cards (troves) with 2 different CR (collateral ratio).

For more details about the difference between these two cards (troves), scroll other FAQs below.

Borrow

To borrow LUSD through Nimbora you first need to connect your wallet. Click on the top right ‘CONNECT WALLET’ button and select the wallet you want to use (see image below)

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Once your wallet is connected, you are ready to borrow LUSD. For the purpose of this tutorial, we will select the trove with 254 CR. Click on the ‘BORROW” button (see image below)

A proposal will appear with the input field. This input field allows you to set the amount of ETH you want to use as collateral to borrow the LUSD based on the trove CR.

In the example below, 0.1 ETH will allow you to borrow 5 LUSD. Once you’re done, click on the “BORROW” button.  The wallet will ask you to sign the transaction.

As you can see in the image below, this transaction contains 2 sub-transactions. The first one is to approve your  0.01 ETH to the trove contract and the second one is called the borrow function. When you are done with checking click on the “CONFIRM” button.

Now, your request has been submitted to the contract. To track the current batch, click on the Batchs section. There you will be able to see how much ETH you deposited in the trove and the status of the batch.

Repay Debt

To repay your debt you need to first check the debt balance of an account.

To do that just click on the trove and select the Analytics section (see image below)

From the example above, you can see a debt of 0.5 LUSD and 1.130 pending debt (the batch was not yet processed).

Now, let’s switch to the Repay tab and set the repeat value to 0.5 LUSD. When we repay this debt, we will get back 0.007 ETH (see image below)

Click on the “REPAY” button Click on the “REPAY” button to sign the transaction. sign the transaction.

Wait unit the batch is processed on Ethereum. When it’s done your tokens are sent to your wallet automatically.

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You can also take a look at this full how-to tutorial video:

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LUSD is a stablecoin pegged to the US Dollar.

LUSD can be only minted against ETH, making it very resilient and independent of any centralized parties. Due to this it is a very popular treasury asset (Olympus DAO, Gearbox, JPEG’s, Dopex, Morpho, Synthetix…), but also across protocols and LP pools on mainnet and many L2’s.

Starknet is a Layer-2 network that utilizes zk-STARKs technology to enhance Ethereum transactions. It aims to make transactions faster, cheaper, and more secure.

Key features of Starknet:

• Low costs
• Developer-friendly
• Speed and efficiency
• CVM

Starknet Book | Learning about Starknet | Starknet on Twitter

LUSD contract on Starknet is: 0x070a76fd48ca0ef910631754d77dd822147fe98a569b826ec85e3c33fde586ac

All official Liquity contracts can be found here.

Currently, the wallets that are compatible with Nimbora x Liquity integration are Argent X wallet and Braavos wallet.

More wallet integration coming soon.

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The maximum is currently capped at 1.75 ETH, but this will change over time.

Yes, really! Liquity charges no interest, ever.

You pay only a one-off fee when opening the loan. This fee is almost always 0.50% but can go slightly higher at times. Read more about it here.

Yes, this is a normal Nimbora behavior.

Your transaction is processed on Starknet, but the batch you joined has not yet closed and you have to wait until it’s finalized and sent to Ethereum.

You can track your batch status on the dashboard section.

Yes, you can use one of the features to fast-close the batch.

This feature will share with you the remaining gas fees required to close the batch. After using this feature, the batch will be closed and sent to Ethereum. This feature will not impact the Starknet time to receive the batch on Ethereum, as it will still require 12 hours.

The additional gas fee is used to cover the batch processing on Ethereum. The total cost is split between the users inside the batch and it’s collected before you join it. So, no additional fees are charged after the batch is processed.

Each Liquity card is called a trove; each trove has a specific CR (collateral ratio). For example, there is one trove with 400 CR and one with 275 CR. The CR is not fixed, as its value is pegged to the ETH price.

This depends on you and how much LUSD you want to borrow.

Trove 275 CR will require less collateral compared to Trove 400 CR, but Trove 400 CR is more secure than Trove 275.

For example, if all troves were open when the ETH price was 1600 USD, trove 275 would be liquidated when the ETH price dropped to 576 USD, and trove 400 would be liquidated when the ETH price would reach 400 USD.

The transaction is processed when the Starknet transaction is accepted on Ethereum. The waiting time to get a transaction accepted on L1 is 12 hours.

The debt balance is in LUSD, and it corresponds to the amount of LUSD you have to repay to get back your full collateral.

If you don’t have enough LUSD in your account you can use the Starkgate bridge to bridge the LUSD amount required to pay your debt and get back your collateral.

After the user’s transaction is accepted on L1, it gets batched with other transactions and processed at max after 1h (the fast time to get it processed is 1 minute)

In March 2021 Liquity contracts have been audited, and Liquity has been operating with 0 issues. The batch and bridge are still in beta; the code has been reviewed multiple times, but not fully audited. As an extra precaution while in beta, we limit the borrowable amount to 500 LUSD.

If the batch is in process it means that it was sent to L1, but it was not accepted yet. This will require 12 hours. When the batch is processed, the status will switch to processed.

To report any issue, please click at "FEEDBACK" button directly on https://app.nimbora.io/ (see image below)

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If you have technical questions about this integration or Starknet in general, you can join Nimbora Discord.

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