FAQ

How does Hana Finance work?

We are a decentralized money market. This essentially just means that we allow users to borrow tokens from our depositors (lenders) to be used in other platforms throughout the ecosystem.

In exchange, all they have to do is to deposit more collateral than their borrowing, and pay a interest rate to the protocol and other depositers, which works on supply and demand - the more borrowing demand vs supply, the higher the interest rate paid by borrowers and received by lenders, vice versa.

How do I participate in the Testnet?

We have a Testnet Guide out to help everyone.

1. Get ETH on Ethereum Holesky Testnet Faucet.

2. Bridge Testnet ETH to Taiko Testnet.

3. Mint Taiko Testnet Tokens via Hana Faucet.

4. Supply / Borrow tokens on Taiko Testnet

How can I be a lender on Hana Finance?

It's as simple as depositing your assets on our platform. You can find more step by step information here:

Deposits

How do I earn interest as a lender?

Interest paid by borrowers are continually accrued into your lending position automatically, thus you'll see the amount of your deposits gradually increasing over time.

How do I know how much interest am I receiving?

Our interest rates are dynamically defined as per an interest rate model - which will be reflected on Taiko's platform. As a lender, your deposits receive a portion of this as defined by our supply rate model.

How do I borrow on Hana?

Borrowing is also a simple process that involes collateral deposit (like lenders) and then the action of borrowing. You can find more step by step information here:

Borrow

How do I know how much interest am I paying?

Our interest rates are dynamically defined as per an interest rate model - which will be reflected on Taiko's platform.

This is done to ensure that utilisation rates on our platform keep a good balance between borrowing demand and available liquidity.

How do I pay my borrowing interest on Hana?

Your interest payments are gradually deducted from your deposited collateral automaitcally, thus you'll see the amount of your collateral gradually decreasing over time.

As a borrower, it is important to keep note of your health factor to prevent liquidations!

My health factor is approaching 1, how do I increase it to prevent liquidations?

First, by understanding health factor, we know there are 2 parts:

1. The value borrowed.

2. The value supplied as collateral.

In order to increase your health factor, you can either:

1. Repay some of the tokens you have borrowed.
2. Supply more collateral to your loan position.

I've been liquidated, what do I do?

You don't have to do anything. Liquidations are an automatic process to ensure that Hana remains healthy for all other participants.

What can be done is for you to maintain vigilance with your health factor to prevent more liquidations, either by depositing more collateral or repaying your loans.