# How to Use CeDeFi Lending

## Borrowing Process

Borrowing from Avalon’s CeDeFi Lending platform is simple, secure, and flexible. Here’s a step-by-step guide to the process:

1. **Supplying Collateral:** To begin borrowing, users must deposit collateral into Avalon CeDeFi. Currently, supported collateral options include FBTC, with plans to expand to other assets soon.
2. **Requesting a Loan:** Once collateral is deposited, users can request a stablecoin loan. The available loan amount is determined by the Loan-to-Value (LTV) ratio, based on the type of collateral provided. Users can borrow multiple times as long as they meet the required LTV.
3. **Claiming the Loan:** After approval, users can claim their USDT loan, typically within 1 - 2 business days.<br>

## Withdrawing Process

To withdraw collateral from Avalon CeDeFi, users follow these steps:

1. **Initiating Withdrawal:** Users initiate a withdrawal request for their collateral. The amount of collateral withdrawn must comply with LTV requirements. If users wish to withdraw all their collateral, they must first repay the entire borrowed amount, including principal and interest.
2. **Claiming Collateral:** After initiating the withdrawal request, users can claim their collateral within 1 - 2 business days.

## Repayment Process

Users can repay any amount towards their stablecoin loan up to the full borrowed amount, which includes both the principal and interest. Repayments can be made at any time during the loan term, offering flexibility to borrowers.

## Liquidation Process

In the event that the Loan-to-Value (LTV) ratio exceeds the liquidation threshold, a portion of the collateral will be liquidated to restore the LTV to a safe level. The liquidation process takes place through Avalon’s proprietary high-frequency trading algorithm, ensuring that the liquidation has minimal impact on market prices.


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