> For the complete documentation index, see [llms.txt](https://docs.ilikeitstable.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ilikeitstable.com/stab-protocol/using-stab-protocol/borrow.md).

# Borrow

{% hint style="info" %}
**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 ](/stab-protocol/technical-info/interest-rate.md)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>](/stab-protocol/technical-info/system-parameters.md)<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="/files/r4QzaiBgXAq2JPFhYwP9" 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="/files/mFZERD9l4DKh5yxuMjKg" alt=""><figcaption><p>An overview of important protocol data</p></figcaption></figure>