Terminologies

  • Total borrowing power: the total monetary value in stablecoin that the users are allowed to borrowed

  • Risk factor: represents the safety of the your deposited asset against borrowed assets, the higher the risk factor the riskier is your loan. When the risk factor reaches 100%, your loan will be liquidated.

  • Loan to Value ratio: the ratio of how much users have borrowed compared to their deposited asset

Concretely, the above statistics are calculated as followed:

TotalBorrowPower=ΣcollateralLTVcollateral∗MarketValuecollateralTotal BorrowPower = \Sigma_{collateral} LTV_{collateral} * MarketValue_{collateral}

RiskFactor=ΣborrowMarketValueborrowΣcollateralLiquidationThresholdcollateral∗MarketValuecollateralRiskFactor = \frac{ \Sigma_{borrow} MarketValue_{borrow}}{ \Sigma_{collateral} LiquidationThreshold_{collateral} * MarketValue_{collateral}}

LTV=ΣborrowMarketValueborrowΣcollateralLTVcollateral∗MarketValuecollateralLTV = \frac{\Sigma_{borrow} MarketValue_{borrow}}{\Sigma_{collateral} LTV_{collateral} * MarketValue_{collateral}}

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