<p><lite-youtube videoid="cOhqkpY51eE" title="Liquid Loans Dapp Walkthrough • Borrow USDL" style="height:100%;width:100%" loading="lazy" fetchpriority="low" playlabel="Play video"></lite-youtube></p>


<p>So you’re ready to collateralize your PLS holdings and mint USDL.</p>



<p>Use our Step-By-Step Guide to make sure you are borrowing USDL correctly.</p>



<h2 class="wp-block-heading tablecontent">How To Borrow USDL</h2>



<h5 class="wp-block-heading tablecontent">Step 1: Obtain PLS</h5>



<p>In order to borrow <a href="https://www.thecoinzone.com/liquidloans/usdl-crypto" target="_blank" rel="noreferrer noopener"><strong>USDL</strong></a>, you need PLS to lock in a vault as collateral.</p>



<p>If you need help, use our guide on <strong><a href="https://www.thecoinzone.com/pulsechain/how-to-buy-pls-step-by-step-guide" target="_blank" rel="noreferrer noopener">How To Buy PLS</a></strong>.</p>



<h5 class="wp-block-heading tablecontent">Step 2: Visit The Liquid Loans dApp</h5>



<p>The link for the Mainnet dApp is here: <strong><a href="https://go.liquidloans.io/#/" target="_blank" rel="noreferrer noopener">https://go.liquidloans.io/#/</a></strong></p>



<h5 class="wp-block-heading tablecontent">Step 3: Connect Wallet</h5>



<p>Once you’ve signed into your wallet, click “Connect Wallet” in the top right corner of the dApp.</p>



<figure class="wp-block-image size-large"><img width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10041922/How-To-Borrow-USDL-Connect-Wallet-375x113.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10041922/How-To-Borrow-USDL-Connect-Wallet-662x200.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10041922/How-To-Borrow-USDL-Connect-Wallet-768x232.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10041922/How-To-Borrow-USDL-Connect-Wallet.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/08/10041922/How-To-Borrow-USDL-Connect-Wallet.webp" alt="How To Borrow USDL Connect Wallet" class="wp-image-3687"/></figure>



<p>Choose Metamask Wallet or Other.</p>



<figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042036/How-To-Borrow-USDL-Connect-Your-Wallet-375x211.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042036/How-To-Borrow-USDL-Connect-Your-Wallet-662x372.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042036/How-To-Borrow-USDL-Connect-Your-Wallet-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042036/How-To-Borrow-USDL-Connect-Your-Wallet.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/08/10042036/How-To-Borrow-USDL-Connect-Your-Wallet.webp" alt="How To Borrow USDL Connect Your Wallet" class="wp-image-3688"/></figure>



<h5 class="wp-block-heading tablecontent">Step 4: Borrow USDL</h5>



<p>Choose “Borrow USDL” from the left hand sidebar.</p>



<figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042246/Borrow-USDL-375x211.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042246/Borrow-USDL-662x372.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042246/Borrow-USDL-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042246/Borrow-USDL.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/08/10042246/Borrow-USDL.webp" alt="Borrow USDL" class="wp-image-3689"/></figure>



<p>Choose the amount of PLS you want to collateralize and the amount of USDL you want to borrow.</p>



<p>We chose a 250% collateral ratio for safety.</p>



<figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042407/How-To-Borrow-USDL-Vault-375x209.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042407/How-To-Borrow-USDL-Vault-662x369.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042407/How-To-Borrow-USDL-Vault-768x427.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042407/How-To-Borrow-USDL-Vault-1536x854.webp 1536w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042407/How-To-Borrow-USDL-Vault-2048x1139.webp 2048w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042407/How-To-Borrow-USDL-Vault.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/08/10042407/How-To-Borrow-USDL-Vault.webp" alt="How To Borrow USDL Vault" class="wp-image-3690"/></figure>



<p>Click Confirm.</p>



<figure class="wp-block-image size-large is-resized"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042517/How-To-Borrow-USDL-Confirm-Transaction-209x300.png 209w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042517/How-To-Borrow-USDL-Confirm-Transaction-662x952.png 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10042517/How-To-Borrow-USDL-Confirm-Transaction.png 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/08/10042517/How-To-Borrow-USDL-Confirm-Transaction.png" alt="How To Borrow USDL Confirm Transaction" class="wp-image-3691"/></figure>



<p>Once the transaction is validated you have officially borrowed USDL!</p>



<h2 class="wp-block-heading tablecontent">Next Steps</h2>



<p>There are many things you can do with your newly <a href="https://www.thecoinzone.com/liquidloans/dont-dump-on-yourself-cash-out-with-liquid-loans/" data-wpil-monitor-id="987">minted USDL</a>:</p>



<ul>
<li>Deposit it into the <strong><a href="https://www.thecoinzone.com/liquidloans/stability-pool" target="_blank" rel="noreferrer noopener">Stability Pool</a></strong> to earn rewards in PLS and <a rel="noreferrer noopener" href="https://www.thecoinzone.com/pulsechain/loan-token-ultimate-guide" target="_blank"><strong>LOAN Token</strong></a></li>
</ul>



<ul>
<li>Provide LP on <strong><a href="https://www.thecoinzone.com/pulsechain/pulsex-complete-guide" target="_blank" rel="noreferrer noopener">PulseX</a></strong> for the USDL:PLS pair. Use your <strong><a href="https://www.thecoinzone.com/defi/lp-tokens" target="_blank" rel="noreferrer noopener">LP tokens</a></strong> to earn LOAN token rewards within the Liquid Loans dApp.</li>
</ul>



<ul>
<li>Enjoy your liquidity to pay your bills, buy a house, or invest in another asset.</li>
</ul>



<h2 class="wp-block-heading tablecontent">Considerations Before Borrowing</h2>



<figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10043342/Considerations-Before-Borrowing-USDL-375x211.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10043342/Considerations-Before-Borrowing-USDL-662x372.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10043342/Considerations-Before-Borrowing-USDL-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/10043342/Considerations-Before-Borrowing-USDL.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/08/10043342/Considerations-Before-Borrowing-USDL.webp" alt="Considerations Before Borrowing USDL" class="wp-image-3695"/></figure>



<p>Opting to borrow USDL entails the potential drawback of jeopardizing your <a href="https://www.thecoinzone.com/pulsechain/pls-accumulation-strategy/" data-wpil-monitor-id="1550">PLS holdings through a liquidation</a>.</p>



<p>Even though your USDL remains intact, a liquidation would incur an immediate loss of up to 10%.</p>



<p>While liquidations have specific scenarios where they might be desirable (i.ie. stop loss during big market correction), most individuals will opt to avoid it. </p>



<p>As a prudent measure, it&#x27;s advisable to establish a robust <a href="https://www.thecoinzone.com/tradfi/what-is-collateral-ratio" target="_blank" rel="noreferrer noopener"><strong>collateral ratio</strong></a>, such as 250%.</p>



<p>If you opt for a collateral ratio lower than that, it&#x27;s essential to stay vigilant regarding downward price volatility of PLS. </p>



<p>Should you observe your collateral level nearing the 110% mark, it is smart to promptly repay your loan to <strong><a href="https://www.thecoinzone.com/liquidloans/how-to-not-get-liquidated" target="_blank" rel="noreferrer noopener">avert the risk of liquidation</a></strong>.</p>



<p>In summary, borrowers should carefully manage their collateral ratios to mitigate the potential impact of liquidation, safeguarding their holdings and financial well-being.</p>

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How To Borrow USDL (Step-By-Step Guide)

Use our step-by-step guide to learn exactly how to lock up PLS and borrow USDL.

