Risk Parameters per Asset
Last updated
Last updated
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 |
|---|---|---|---|---|---|
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.
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 |
|---|---|---|---|---|
$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%
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