Risk Parameters
Last updated
Last updated
The table below shows the risk parameters for each asset that is currently supported on SiO2 Finance. The table will continue grow as we list more assets to the protocol.
| Asset | Collateral | Loan To Value | Liquidation Threshold | Liquidation Bonus | Reserve Factor |
|---|---|---|---|---|---|
LTV is defined as the maximum asset (in dollar value) that one can borrow with a specific asset acting as a collateral.
Liquidation Threshold is the percentage by which a position is defined as collateral deficient. For example, Liquidation Threshold of 80% means that if the borrowed value rises over 80% of the collateral, the position is collateral deficient. Then the asset might be liquidated. For each wallet, the Liquidation Threshold is calculate as the weighted average of the Liquidation Thresholds of the collateral assets and their value.
The reserve factor allocates a share of the protocol’s interests to a collector contract from the ecosystem treasury.
SiO2 Finance’s solvency risk is covered by the Safety Module, with incentives originating from the ecosystem reserve. As such, the Reserve Factor is a risk premium calibrated based on the overall risk of the asset. Stablecoins are the least risky assets with a lower reserve factor while volatile assets hold more risk and have a higher factor.
These risk parameters are decided based on a range of factors, such as asset liquidity on Astar Network, volatility of the asset, centralization risks, and etc.
USDC
Yes
80.0%
85.0%
2.5%
15.0%
BUSD
Yes
80.0%
85.0%
2.5%
15.0%
BAI
Yes
80.0%
85.0%
2.5%
15.0%
USDT
Yes
77.5%
82.5%
5.0%
20.0%
DAI
Yes
77.5%
82.5%
5.0%
20.0%
aUSD
Yes
77.5%
82.5%
5.0%
20.0%
WETH
Yes
75.0%
80.0%
7.5%
25.0%
WBTC
Yes
70.0%
77.5%
7.5%
25.0%
DOT
Yes
65.0%
75.0%
10.0%
25.0%
BNB
Yes
65.0%
75.0%
10.0%
25.0%
WASTR
Yes
55.0%
65.0%
12.5%
30.0%
nASTR
Yes
50.0%
60.0%
12.5%
30.0%