11 times, increasing their exposure to price changes. This is possible because aUSD can be borrowed against FTM, sold on the open market to purchase more FTM — rinse and repeat.*
110%. A minimum debt of
100.00 aUSDis required.
0.5%under normal operation. The fee is
0%during Recovery Mode. A
10 aUSDLiquidation Reserve charge will be applied as well, but returned to you upon repayment of debt.
baseRate. The fee rate is confined to a range between
5%and is multiplied by the amount of liquidity drawn by the borrower.
0.5%and the borrower draws
4,000 aUSDfrom his open Trove. Being charged a fee of
18.91 aUSD, the borrower will obtain
3,781.09 aUSDafter the Liquidation Reserve and issuance fee are deducted.
110%. So if your Trove has a debt
10,000 aUSD, you would need at least
$11,000worth of FTM posted as collateral to avoid being liquidated.
9.09% (= 100% * 10 / 110)of your collateral’s Dollar value.
10 aUSDis set aside as a way to compensate gas costs for the transaction sender in the event your Trove being liquidated. The Liquidation Reserve is fully refundable if your Trove is not liquidated, and is given back to you when you close your Trove by repaying your debt. The Liquidation Reserve counts as debt and is taken into account for the calculation of a Trove's collateral ratio, slightly increasing the actual collateral requirements.