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Repay

Learn how to repay a loan on Covenant
About
Borrowers can repay their loans by buying back zTokens with the loan currency they originally borrowed. There are two interfaces for repayment on Covenant, 'retail' and 'pro.' Both perform the same actions, swapping currency for a basis currency, but the 'pro' UI is for more sophisticated users and traders who would like more granular control of their transactions.

Step-by-step 'retail' version

  1. 1.
    Making sure the 'RETAIL' slider, in the upper righthand corner is selected, click the 'REPAY' tab from the right-hand window, pictured below. Enter your desired repayment amount amount and click 'Repay {loan currency}.'
  2. 2.
    Approve the necessary transaction approvals in your wallet. Once approved, your debt and position summary stats will be updated to reflect your repayment amount. Reminder, 'repayment' means buying and burning zTokens. The zToken price and the interest rate are inversely related, so repayment increases the interest rate for all borrowers and lenders.

Step-by-step 'pro' version

  1. 1.
    Click the slider in the upper righthand corner over to 'PRO'
  2. 2.
    Make sure the swap interface is configured to swap the loan currency for zTokens, not the other way around. If it isn't, click on the highlighted button below to switch the swap direction.
  3. 3.
    Enter the number the amount of basis currency you would like to swap for zTokens. Click 'Submit' and approve the necessary transaction approvals through your wallet.
  4. 4.
    Your debt and position summary stats will be updated to reflect the extent of your repayment.
Last modified 4d ago