How to Create a CDP

Navigate to the Borrow page

  • Select the synthetic you wish to borrow on the right panel

  • Choose the collateral assets you want to create your position with

In the example above, one can see quick previews of the Maximum Proportion (MP) and Weight (W) parameters used for determining loan health (see Synthetic Parameters)

  • Modify collateral amounts to determine a borrowing capacity

  • Choose a borrow amount by either entering a specific value or using the LTV slider

By default, Safe Mode will be enabled, enforcing a minimum health factor on newly created positions for protection against liquidations. This can be disabled in settings.

  • Review your borrow action, and click the "borrow" button

By default, since Butane transactions can contain multiple actions (see the section on Action Composability in The Butane Platform), this will add a "borrow" action to your transaction cart. If you are only performing a single action and want to save yourself a few clicks, you can turn off action composability in the settings panel, which will then make the button prompt you to submit the borrowing transaction immediately.

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