Fees & Parameters
Protocol Parameters
We treat WETH as 100% of its value in USDB, and we will enable up Accounts to borrow up to 300% LTV against that.
Account liquidation threshold.
Equity has to be less than X% of loan value before it is liquidated where X% is some % greater or equal to 100%.
Parameters per Strategy to mitigate exposure.
Deposit caps (limit how much USDB can be deposited into a Strategy)
Risk adjusted values (1 USDB deposited in Strategy with Risk A shouldn't be equal to 1 USDB deposited in Strategy with Risk B).
Mitigate risk per Account.
Account can only have X% of their loan allocated to Y strategy.
Collateral liquidation incentives.
We need to incentive timely liquidations when Accounts become liquidatable in order to protect lenders.
Since we have flash loans, we can advertise that functionality to others who can run collateral liquidation bots as well.
We can sell the user's debt in exchange for their collateral at some bonus.
If user has WETH has a 10% liquidation bonus, liquidator can pay off 1 USDB of debt to get at most 1.1 USDB of WETH collateral.
Caps on Lending Pool USDB deposits and Manager WETH deposits.
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