# Borrowing discounted GHO

A user's pod, which is their borrowing position, is responsible for managing their deposited collateral and interacting with the AAVE V3 market. By allowing a specific pod to rent stkAAVE through Dullahan, the pod can automatically mint discounted GHO. Each pod can manage only one type of collateral, but new pods can always be created, even if they use the same type of collateral. Once a pod is created, the user can borrow GHO against their position in the same way they would on AAVE. The LTV (loan to value) and interest rate of the position depend on the underlying money market. It is crucial for borrowers to keep an eye on their pod's health factor, as positions that fall below the liquidation threshold can be liquidated.

### Minting GHO with Dullahan

1. **Create Your Borrow Pod**: Begin by visiting the "borrow" tab within the Dullahan app. Select "new collateral" to establish a borrow pod dedicated to managing your collateral on AAVE V3. Here's how:

   a. Choose the collateral of your preference from the list of whitelisted assets. 

   b. Give your approval and supply the chosen collateral to proceed with the first step.

<figure><img src="/files/lHukoFiIUwIeTbijpRqz" alt=""><figcaption></figcaption></figure>

2. **Secure Your Discounted GHO**: Once your collateral is securely deposited, click on "borrow" to obtain your discounted GHO. As you enter the desired GHO amount, the automatic discount rate will be applied. Please note that a minor mint fee will be included as part of the loan.
3. **Preview Health Factor**: Before finalizing the transaction, take a moment to review your new health factor, ensuring a comprehensive understanding of your borrowing position.
4. **Complete the Transaction**: This will secure for you the best possible GHO price.

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