# Depositing

The first step to start interacting with the Mimo protocol is to create a Vault and deposit collateral. Increasing the amount of collateral deposited increases the amount of PAR/paUSD one can borrow.

![](/files/-MeONN46WgZgZfYG2nAI)

The deposited collateral is locked in a Vault, and allows the owner to borrow PAR/paUSD tokens up to an amount based on the Minimum Collateralization Ratio (MCR). An MCR of 150% means borrowers need 150% collateral deposited before they can borrow up to 100%.


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