App

Repay

Repaying returns USDG to the pool and burns the matching debt. You can repay in part or in full without a prepayment penalty, including when new borrowing is closed.

Interest accrues continuously, so what you owe is always a little more than what you borrowed. The app shows the current figure to the cent.

Step by step

  1. 1
    Hold enough USDG. Repayment is made in the borrowed asset. If you spent the USDG elsewhere you will need to acquire it again first.
  2. 2
    Open the debt position. At app.zona.finance/lend, find USDG under your borrowed assets and switch the control panel to Repay.
  3. 3
    Choose an amount. 100% repays the full outstanding balance including accrued interest. Anything less is a partial repayment, which is a perfectly normal way to manage a position.
  4. 4
    Approve if needed, then repay. A reusable USDG allowance from an earlier supply or repayment can cover this step. Otherwise, approve USDG once before the repay transaction. The debt drops when repayment confirms.

Illustrative example · amounts and APYs are not live

SupplyWithdrawBorrowRepay
1,250USDG
Outstanding debt2,514.08 USDG
25%50%75%100%
Borrow APY4.20%
Health Factor4.77
Repay

When to repay

  • When the health factor is slipping. Repaying is the most direct lever you have. Adding collateral works too, but repayment shrinks the exposure rather than propping it up.
  • Before a close you are unsure about. Prices go quiet while the market is shut and the position cannot be trimmed against a mark that reflects the news. Reducing debt costs a little interest; being liquidated at the reopen costs the liquidation bonus.
  • When borrow rates spike. Utilisation drives the rate, and repaying is how you stop paying for it.
  • To free your collateral. Clearing the debt entirely unlocks the whole supplied balance for withdrawal, and that withdrawal works even while prices are unavailable.

If your health factor will not display, repay anyway. The number being unreadable does not stop the transaction, and it is the safest thing you can do while the market is dark.