Risk Parameters per Asset
Each asset in the Bonzo Finance protocol has configurable risk parameters, which influences how they are supplied and borrowed. The calibration of the parameters will be conservative as the protocol launches, to ensure safety, and become more aggressive as the Bonzo Finance ecosystem matures with educated users, greater liquidity, and a thriving liquidation ecosystem.
The table below offers a summary of the latest risk parameters per asset:
| Asset | Collateral | Loan-to-Value (LTV) | Liquidation Threshold | Liquidation Bonus | Reserve Factor |
|---|---|---|---|---|---|
$HBAR | Yes | 75% | 80% | 5% | 20% |
$HBARX | Yes | 70% | 75% | 5% | 20% |
$USDC | Yes | 75% | 78% | 4.5% | 20% |
$SAUCE | Yes | 70% | 76% | 8% | 20% |
$XSAUCE | Yes | 70% | 76% | 8% | 20% |
$KARATE | No | 55% | 65% | 13% | 20% |
$DOVU | No | 55% | 65% | 12% | 20% |
$PACK | No | 45% | 60% | 12% | 20% |
$HST | No | 40% | 50% | 12% | 20% |
$STEAM | No | 45% | 50% | 14% | 20% |
The table above results from the asset risk assessment relating to security, governance and the markets. Tokens with high risk exposure to single counter-parties cannot be used as collateral.
Risk Parameter Changes
When market conditions change, risks change; Bonzo Finance is continuously monitoring the assets integrated into the protocol, which sometimes requires quickly adapting the risk parameters. The table below tacks parameter changes over time.
| Date | Asset | Parameter Changed | From | To |
|---|---|---|---|---|
- | - | - | - | - |
Last updated