How to use KRW*

한국어로 읽기 To borrow KRW*, you deposit collateral and receive the newly minted KRW* in your wallet. Your deposited assets back the loan. This lets you access liquidity without selling your assets. You can also borrow against a dollar asset to take on debt denominated in won. You still owe the debt after spending or investing the borrowed KRW*, and interest continues to accrue.

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Borrow against assets you hold

You can borrow KRW* against supported ETH- or BTC-based tokens, then swap it for another asset in a supported market if needed. You must repay your debt in KRW* to recover your collateral.

Example: borrow 10 million KRW* against ₩20 million of collateral

This example holds the collateral price constant and excludes upfront fees. It does not specify supported assets or actual borrowing limits.

Item	Before borrowing	After borrowing
Collateral asset	Held in your wallet	Deposited as collateral for your loan
Collateral value	₩20 million	₩20 million
KRW* received	None	10 million KRW*
Debt	None	10 million KRW*, plus interest and applicable costs

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Dollar assets and won-denominated debt

If you borrow KRW* against a dollar asset and swap it for more dollar assets, you increase your dollar exposure while taking on won-denominated debt. For the same amount of KRW* debt, a weaker won reduces the dollar cost of repayment; a stronger won increases it. Your total profit or loss also depends on the prices of your collateral and purchased assets, borrowing interest, and swap costs.

Example: how the exchange rate changes the dollar value of debt

Assume a debt of 14 million KRW*, a KRW* market price of ₩1, and no interest or fees.

Exchange rate	KRW* owed	Dollar value of debt
₩1,400 per dollar	14 million	$10,000
₩1,500 per dollar: weaker won	14 million	About $9,333
₩1,300 per dollar: stronger won	14 million	About $10,769

The exchange rate changes the debt’s dollar value, not the number of KRW* tokens owed.

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Yield-bearing dollar collateral

If batt supports a yield-bearing dollar asset as collateral, calculate the income it earns and the interest you pay on your KRW* debt separately. The difference between those two rates is not your total return. The collateral asset can also lose value or restrict redemptions.

Compare collateral income with borrowing costs

Yield accrues on the collateral amount, while borrowing interest accrues on the debt amount. The two rates apply to different balances.Separate the return you would earn by simply holding the collateral from the profit or loss on the additional trade funded by your loan. To assess the borrowing strategy, include that trade’s result, borrowing interest, exchange-rate changes, and swap costs.

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From borrowing to repayment

1. Choose a supported collateral token and the amount to borrow. Check its liquidation threshold. Borrowing more against the same collateral leaves less room before liquidation. Not every wrapped ETH or BTC token is supported.
2. Choose an annual interest rate. A lower rate reduces your interest costs but can put you earlier in the redemption queue.
3. Review the terms before approving. Check how much KRW* you will receive, how much you will owe, your collateral ratio, and the fees. If you plan to swap the KRW*, check the market’s actual quote too.
4. Monitor your position. Watch the collateral price, exchange rate, and accrued interest. You can add collateral or repay part of the debt if needed.
5. Repay in KRW*. If you swapped the borrowed tokens for another asset, you will need to get KRW* again. Repay your total debt, including accrued interest and applicable costs, to recover the remaining collateral.

See Managing your position for ongoing checks, or How it works for minting and redemptions.