Borrow

Borrow USDT/USDC/mUSD

Guide

Borrowing Bitcoin-backed loans in BitFire allows you to access liquidity without selling your BTC. By using your deposited BTC as collateral, you can borrow stablecoins or other supported assets, unlocking capital while maintaining exposure to Bitcoin.

When you borrow:

• Your BTC collateral secures the loan, ensuring the protocol remains fully collateralized.

• Borrowing capacity is determined by the Loan-to-Value (LTV) ratio. For example, with a 70% LTV, if you deposit $10,000 worth of BTC, you can borrow up to $7,000. LTV helps manage risk — borrowing more increases liquidation risk, while borrowing less keeps your account safer.

• Borrowing increases your liquidity, allowing you to participate in DeFi opportunities such as trading, yield farming, or payments.

• You retain full exposure to Bitcoin’s value, so your collateral continues to benefit from price appreciation.

By borrowing, you make your Bitcoin position productive without selling your BTC, enabling flexible financial strategies while preserving ownership.

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Product Demo

1. Click “Borrow”

Navigate to the BitFire dashboard and select the “Borrow” option.

2. Select Asset and Amount

• Choose the asset you want to borrow, such as USDT or USDC.

• Enter the amount you wish to borrow, keeping in mind your available LTV based on your collateral.

3. Confirm Transaction

• Review the loan details, including borrowed amount, interest rate, collateral, and LTV.

• Click “Confirm” to execute the loan. The borrowed funds are now available in your wallet for use.

Contract Interface

/**
* @dev Emitted on borrow() and flashLoan() when debt needs to be opened
* @param reserve The address of the underlying asset being borrowed
* @param user The address of the user initiating the borrow(), receiving the funds on borrow() or just
* initiator of the transaction on flashLoan()
* @param onBehalfOf The address that will be getting the debt
* @param amount The amount borrowed out
* @param interestRateMode The rate mode: 1 for Stable, 2 for Variable
* @param borrowRate The numeric rate at which the user has borrowed, expressed in ray
* @param referralCode The referral code used
*/
event Borrow(
   address indexed reserve,
   address user,
   address indexed onBehalfOf,
   uint256 amount,
   DataTypes.InterestRateMode interestRateMode,
   uint256 borrowRate,
   uint16 indexed referralCode
);

/**
* @notice Allows users to borrow a specific `amount` of the reserve underlying asset, provided that the borrower
* already supplied enough collateral, or he was given enough allowance by a credit delegator on the
* corresponding debt token (StableDebtToken or VariableDebtToken)
* - E.g. User borrows 100 USDC passing as `onBehalfOf` his own address, receiving the 100 USDC in his wallet
*   and 100 stable/variable debt tokens, depending on the `interestRateMode`
* @param asset The address of the underlying asset to borrow
* @param amount The amount to be borrowed
* @param interestRateMode The interest rate mode at which the user wants to borrow: 1 for Stable, 2 for Variable
* @param referralCode The code used to register the integrator originating the operation, for potential rewards.
*   0 if the action is executed directly by the user, without any middle-man
* @param onBehalfOf The address of the user who will receive the debt. Should be the address of the borrower itself
* calling the function if he wants to borrow against his own collateral, or the address of the credit delegator
* if he has been given credit delegation allowance
*/
function borrow(
   address asset,
   uint256 amount,
   uint256 interestRateMode,
   uint16 referralCode,
   address onBehalfOf
) external;