> For the complete documentation index, see [llms.txt](https://guides.instadapp.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guides.instadapp.io/protocols/liquity/how-to-open-a-trove-and-borrow-lusd.md).

# How to open a Trove and borrow LUSD

Learn how to use Liquity protocol to generate LUSD against your ETH assets

Enter the Liquity Panel find it under Protocols:

![](https://285790977-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MQnOXLAFDOGcotXLu9D%2Fuploads%2Fi4TFk2YzkKQgSEVud1Yg%2Fdelliquirt.gif?alt=media\&token=82ba2b81-ff8f-4a7c-9d3a-199147842090)

Click **Open Trove** to begin. This will open the side panel where you can enter your Trove details. 

![Opening a Trove will always generate accompanying Debt in the process](https://285790977-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MQnOXLAFDOGcotXLu9D%2Fuploads%2Fliy1op2NjBZMUNJx0wvi%2Fdel_liquity_open.gif?alt=media\&token=96f23ba4-8d1c-4e5c-984a-0e26520744f4)

Liquity similar to MakerDAO has a **LUSD Debt Minimum**, for Liquity Troves you must borrow up to **2000 LUSD** and *similarly you cannot owe the protocol less than 2000 LUSD*. Liquity also takes adds some additional debt which is returned, see below.

!['Using Liquity you can secure a $20,000 LUSD loan paying only 0.5% in the borrowing fee!'](https://285790977-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MQnOXLAFDOGcotXLu9D%2Fuploads%2Fw3rc6pq0gmLQbuxxLWvr%2FScreen%20Shot%202022-03-13%20at%203.56.56%20PM.png?alt=media\&token=5f0c0de7-d2c6-4e97-bec9-b8304320453b)

{% hint style="info" %}
Liquity limits each Ethereum address to one Trove. If you would like to have multiple Liquity positions; you can create additional DSA accounts.
{% endhint %}

### Trove Details

![The position contains 200 LUSD Debt which is not required when closing the Trove.](https://285790977-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MQnOXLAFDOGcotXLu9D%2Fuploads%2FX4oI3Yn9YewKldl1W7vA%2Fshort.png?alt=media\&token=5bd547b8-813b-4366-b45f-c4a4f58b4ce9)

**Liquidation Reserve:** The Liquity Protocol requires all troves leave a gas reservation of 200 LUSD this is only used in the case of a liquidation, this is returned when you close the Trove.

**Borrow Fee:** Liquity borrowers pay the borrowing fee upfront resulting in an interest free loan. This amount is added to your debt whenever you mint LUSD.

**Total Debt:** This is the total debt in the position including the Liquidation Reserve and the Borrowing Fee.

![After creating your Trove find newly minted LUSD in your DSA Balance](https://285790977-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MQnOXLAFDOGcotXLu9D%2Fuploads%2FQGHu0MhZiq9ZUE7SKNHp%2FScreen%20Shot%202022-03-13%20at%203.57.29%20PM.png?alt=media\&token=b18a76d9-6172-43fe-8561-efaf50347695)