# Borrow

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**IMPORTANT NOTE:** STAB is **NOT** a fixed-peg stable asset such as DAI, USDC or LUSD!\
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Instead, its peg is variable, meaning it should not always trade at the same price. Its purpose is to provide RELATIVE stability. Read more about the why in the[ Interest Rate ](https://docs.ilikeitstable.com/stab-protocol/technical-info/interest-rate)section.
{% endhint %}

**Borrow STAB**\
Borrowing STAB is done by providing collateral. First, select one \[1], input the amount of collateral to use \[2], and choose a collateralization ratio \[3]. This ratio needs to be above the Minimum Collateralization Ratio (MCR, currently 150%), to ensure STAB always remains fully backed. Mind the warning shown \[4] - a loan with collateralization ratio below the MCR is prone to being liquidated. Choose a ratio you're happy with, getting your loan liquidated comes with [<mark style="color:blue;">**liquidation penalties**</mark>](https://docs.ilikeitstable.com/stab-protocol/technical-info/system-parameters)<mark style="color:blue;">**!**</mark> The amount of STAB corresponding to the chosen parameters, is then shown on the bottom of the widget \[5].\
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Currently only XRD is allowed as collateral.

<figure><img src="https://1246904744-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fc4HBJZk1BwHmeZcCfjDz%2Fuploads%2FWlqpvEfqYstFjdH3ZZEn%2Fborrow.PNG?alt=media&#x26;token=b2537c99-8e72-4370-ba60-644b28eee8ab" alt="" width="522"><figcaption></figcaption></figure>

**Protocol overview**\
The state of the protocol is displayed on to give the user as much insight as possible.

<figure><img src="https://1246904744-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fc4HBJZk1BwHmeZcCfjDz%2Fuploads%2FakiN6eIqOSastjPRQtvO%2Fprotocol-overview.PNG?alt=media&#x26;token=93f55882-1123-44d0-9d9e-0319d01c16dc" alt=""><figcaption><p>An overview of important protocol data</p></figcaption></figure>