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What this is

This page is the fastest way to understand how borrowing works in Varla. You deposit supported prediction market positions (ERC1155) as collateral, then borrow the chain’s collateral token.
Polygon (Polymarket): USDC
BSC (Opinion): USDT

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How it works

1

Connect your wallet

Go to the app and connect the wallet that holds your prediction market positions.
2

Approve collateral transfers (one-time)

You’ll approve Varla to move your ERC1155 positions so they can be deposited as collateral.
3

Deposit collateral

Select one or more supported position IDs and deposit some (or all) of your balance.
4

Borrow stablecoins

Choose an amount up to your max borrow limit. Borrowing power is computed using conservative pricing.
5

Monitor your health factor

Stay above HF 1.0. If prices move against you, repay some debt or add more collateral.
6

Repay, then withdraw collateral

Repay principal + accrued interest to unlock collateral and withdraw it back to your wallet.

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Rules that matter

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Health factor (HF)

If HF < 1.0, your account is eligible for liquidation.

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Borrowing power is risk-adjusted

Borrowing limits depend on LTV tiers, oracle validity, and any position overrides.

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Repay delay

There is a 1-minute repay delay after your most recent borrow.

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Practical tips

  • Don’t borrow the max; keep buffer.
  • If a collateral price becomes unavailable, it may contribute $0 to borrow power until it recovers.