# How Liquity strategy works
### Step 1 : Deposit ETH to Liquity Trove and borrow LUSD
Please go to Liquity Trove in Wasabix's frontend. You can deposit ETH to borrow LUSD in the Trove with c-ratio(Collateral ratio) you choose. In here you are interacting with Liquity's smart contracts directly. Once you've completed the transaction, you will receive LUSD. You may close the Trove by repaying your debt and claim your collateral asset.
Please follow the guide in below to understand more about Liquity Trove:
1. Please choose Trove to Deposit ETH. You may also repay/withdraw/close.
2. This is the place to show your current debt status. In the example above, a user has deposited 5 ETH(worth $10,732.56 USD) as collateral to borrow 5,000 LUSD, the C-Ratio(Collateral Ratio) is 214.65%(=10,732/5,000)
3. This is the place where you can deposit ETH as collateral asset.
4. This is the place where you can choose how much LUSD to borrow. Please note that the minimum C-Ratio is 110% and minimum debt is 2000 LUSD.
5. This is the updated C-Ratio once you enter the ETH and LUSD in 1 and 2.
6. The borrowing fee is a one time fee from Liquity.
Please note that **You might lose all your collateral when facing flash crash with low Collateral ratio.** A Collateral Ratio above 200% or 250% is recommended for additional safety. A minimum debt of 2000 LUSD is required.
### Step 2: Deposit LUSD to Liquity Vault
The mechanism is the same with [other Vaults in Y.U.M.](broken://pages/-MVygu4xGri2lCY1Iads) Please follow the example in below to understand how to interact to the Vault:
1. Please choose Deposit LUSD or DEPOSIT section to start interacting with the Vault.
2. In here you may deposit LUSD. Once deposited, the LUSD will be deposited in Liquity's Stability Pool.
3. Wasabix's Kickback rate is 100%. 100% means Wasabix users would receive 100% of their earned rewards while the frontend receives the remaining 0%.
### Step 3 : Borrow $waLUSD
1. Please Choose the Borrow Section to start borrowing $waLUSD.
2. You may choose the desired amount of $waLUSD to borrow. Maximum rate is 50%. If you deposited 1000 LUSD, you may borrow up to 500 $waLUSD from the Vault.
### Step 3 : Stake $waLUSD into Wasabix Pool
Please go to Farm page, select $waLUSD pool to deposit $waLUSD/harvest $WASABI.
1. Please go to Farm page to start staking $waLUSD.
2. This is the $waLUSD pool.
3. This number is the total amount of staked $waLUSD.
4. This number is the total amount of your staked $waLUSD.
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