Repay

Repaying borrowed tokens in Tydro is an important step in managing active borrow positions. Borrowers can repay using the same tokens they borrowed, or by using aTokens representing the same underlying asset. In supported cases, repayment may also be done using other tokens such as collateral assets through periphery contracts that handle asset conversions automatically. This flexibility makes it easier for borrowers to manage and close their positions when needed.

Repayment improves the health factor of a position by increasing the collateralisation ratio. By reducing the outstanding debt relative to the collateral posted, repayment lowers liquidation risk and may allow borrowers to safely withdraw a portion of their collateral.