Parameters
Name | Symbol | Collateral | Loan-to-Value | Liquidation Threshold | Liquidation Bonus | Reserve Factor |
|---|---|---|---|---|---|---|
DAI | DAI | ✅ | 75% | 80% | 5% | 10% |
USDC | USDC | ✅ | 75% | 80% | 5% | 10% |
Tether | USDT | ❌ | - | - | - | 10% |
Name | Symbol | Collateral | Loan-to-Value | Liquidation Threshold | Liquidation Bonus | Reserve Factor |
|---|---|---|---|---|---|---|
Wrapped Bitcoin | WBTC | ✅ | 60% | 75% | 5% | 10% |
Wrapped Ethereum | WETH | ✅ | 80% | 82.5% | 5% | 10% |
Ethereum | ETH | ✅ | 80% | 82.5% | 5% | 10% |
NEAR Protocol | NEAR | ✅ | 50% | 65% | 10% | 15% |
Aurora | AURORA | ✅ | 40% | 65% | 10% | 20% |
To retrieve the relevant values directly from the smart contracts, see this section of the Dev Docs.
Risk parameters allow users to mitigate market risks of the selected currencies on Australis. Collaterals may be subject to volatility. If the value of the collateral reaches a threshold, part of it will be up for liquidation to repay part of the position and keep it open.
As elaborated before, due to its centralized structure USDT’s counterparty risk is too high. Stablecoins are mostly used for borrowing, while volatile assets are mostly used as collateral. In conclusion, this is a very beneficial asset to be deposited by users, but it’s not allowed to be used as collateral on Australis.
The Loan to Value (LTV) ratio defines the maximum amount of currency that can be borrowed with a specific collateral. It’s expressed in percentage: at LTV=75%, for every 1 ETH worth of collateral, borrowers will be able to borrow 0.75 ETH worth of the corresponding currency. Once it's borrowed, the LTV evolves with market conditions.
Maximum Loan-to-Value
The liquidation threshold is the percentage at which a position is defined as undercollateralized. For example, a Liquidation threshold of 80% means that if the value rises above 80% of the collateral, the position is undercollateralized and could be liquidated.
Liquidation Threshold calculation for each wallet
Bonus on the price of assets of the collateral when liquidators purchase it as part of the liquidation of a loan that has passed the liquidation threshold.
For each wallet, these risks parameters enable the calculation of the health factor:
Health Factor
The reserve factor allocates a share of the protocol's interests to a collector contract as reserve for the ecosystem. This reserve pays protocol contributors. Stablecoins are the less risky assets with lower reserve factor while volatile assets hold more risk with a higher factor. The collector contract can be found at:
0x18612d44b8Da30563Ebe6001D36fd85dA2281A9A
Last modified 4mo ago