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 aUSD
is required.0.5%
under normal operation. The fee is 0%
during Recovery Mode.
A 10 aUSD
Liquidation 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 0.5%
and 5%
and is multiplied by the amount of liquidity drawn by the borrower.0.5%
and the borrower draws 4,000 aUSD
from his open Trove. Being charged a fee of 18.91 aUSD
, the borrower will obtain 3,781.09 aUSD
after the Liquidation Reserve and issuance fee are deducted. 110%
.110%
. So if your Trove has a debt 10,000 aUSD
, you would need at least $11,000
worth of FTM posted as collateral to avoid being liquidated.150%
(e.g. 200%
or better 250%
).9.09% (= 100% * 10 / 110)
of your collateral’s Dollar value.10 aUSD
is 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.