Repay Loans

How to repay borrowed stablecoins — partial repayment, full repayment, and the mechanics of debt reduction.

How Repayment Works

Call repay(amount) on VarlaCore. Stablecoins are transferred from your wallet back to the VarlaPool, reducing your scaled debt. Your health factor improves immediately.

1. Approve USDC/USDT to VarlaCore (one-time)
2. Call repay(amount) — or repay(type(uint256).max) for full repayment
3. Stablecoins transfer: your wallet → VarlaPool
4. Scaled debt reduced: scaledDebt -= amount / currentBorrowIndex
5. Health factor improves immediately

Partial vs Full Repayment

Partial repayment — pay back any amount. Reduces debt and improves health factor. Remaining debt continues accruing interest.
Full repayment — pass type(uint256).max as the amount. The contract calculates your exact debt (including accrued interest to the current second) and charges exactly that amount. After full repayment, you can withdraw all collateral.

Always use type(uint256).max for full repayment rather than trying to calculate the exact amount yourself. Interest accrues per-second, so your calculation will be slightly off by the time the transaction is mined.

After Repayment

After partial repayment:
├── Health factor improved
├── Can withdraw some collateral (if HF allows)
└── Remaining debt continues accruing interest

After full repayment:
├── Debt = 0
├── Health factor = ∞
├── Can withdraw ALL collateral
└── Account remains open for future use

Repaying all debt doesn't close your account. Your collateral remains deposited and you can borrow again anytime. To fully exit, repay all debt then withdraw all collateral.