Borrow LUSD on Starknet

Liquity, launched in April 2021, quickly reached a TVL of $4.5b, becoming a DeFi favorite. Since then, the most requested feature has been borrowing on a Layer 2 (L2). Due to Liquity's immutability, contracts couldn't be altered, leading to an innovative solution: bundling transactions on the L2, bridging them to Liquity on the ETH mainnet, and back.

Initially developed by Aztec and later improved on by Space Shard, it became an instant success.

Why borrow on a L2?

For several reasons, the most interesting being:

Lower gas costs, enabling more frequent interactions/adjustments
No minimum loan; on mainnet it is $2’000.
Access to a new, growing ecosystem - Starknet

How to mint LUSD on Starknet?

Step 1 - Install a Starknet wallet like Argent X or Braavos.

Step 2 - Bridge funds via the official bridge. Connect both your wallets, then bridge ETH over.

Step 3 - Mint on Nimbora.

With your ETH at hand, you can deposit it as collateral and mint LUSD against it. Contrary to mainnet, where you choose your own collateral ratio, on Nmbora they are predetermined. You have 2 options, Medium and High. Both of them are safe and very far from liquidation levels.

Click on ‘borrow’, enter the ETH amount, and the LUSD amount will be automatically determined based on the fixed collateral ratio.

The maximum amount you can deposit is 1.75 ETH

This is subject to Starknet’s Alpha status, but will be increased in due time.

Once borrowed, the transaction joins the current batch awaiting fulfillment. Considering bridging and Starknet's finality, expect LUSD availability in 12-14 hours.

What to do with LUSD on Starknet?

Currently, you can LP it one of the 3 main DEXes - Ekubo, JediSwap or MySwap.

From January 2024, LUSD will join the zkLend money market, with more integrations in progress.

Borrowing through Liquity on Nimbora, and using the various DEXes may enhance your chances for a potential STRK airdrop.

For a video tutorial on borrowing, check it out here.

Questions?

Join the Liquity Discord and Nimbora Telegram.

We are looking forward to your feedback and a growing Starknet ecosystem.

Disclaimer:

Do note that this is a separate integration done completely independently by the Nimbora team, and that there are risks attached to it. The code has been reviewed, but not fully audited.