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Adjusted collateral ratio, health factor and liquidation penalty šŸ“ˆ

December 17, 2021

Collateral ratios thumbnail

GM! šŸ‘‹
We decided to increase the collateral ratio, the health factor and change the liquidation penalty.

Now, these values are as follows:
šŸ’Š Health factor 80% -> 90%

šŸ›”ļø Collateral ratios:
šŸ”¹ USDC 80% -> 85%
šŸ”¹ renBTC 70% -> 80%
šŸ”¹ SOL 60% -> 70%
šŸ”¹ mSOL 50% -> 70%
šŸ”¹ whETH 60% -> 70%
šŸ”¹ whFTT 50% -> 60%
šŸ”¹ SNY 30% -> 35%

What will it change? šŸ¤”
In short, you'll be able to mint more synthetic assets having the same amount of collateral. šŸ¤‘ Also, when you'll be liquidated, you lose less collateral šŸ˜Ž

How much exactly?
For example, consider you deposited 100$ in USDC šŸ’² Collateral ratios example

Liquidation penalty
Previously, the ratio in liquidation penalty was 5/5.
It meant that 5% of the liquidated amount went to the liquidator and another 5% to the protocol.
Now, we're changing this ratio to 8/1. This means that the liquidated amount will be lower by 1%. And 7% of this amount will go to the liquidator and 1% to the protocol.

If you'd like to know more about liquidation, check out our blog post about it.


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