Dashboard Metrics Explained
Last updated
Last updated
The Bonzo Finance dashboard provides users with essential information about their lending and borrowing positions. Here's an overview of these metrics:
Loan Health Indicator Bar: This bar represents the overall health of your current positions. It visually shows a user's current loan-to-value (LTV) ratio (white), relative to their maximum LTV (yellow) and liquidation LTV (red).
Borrow Power: This figure represents the maximum amount a user can borrow based on their supplied collateral. It fluctuates with market conditions and the value of supplied collateral.
Net APY (Annual Percentage Yield): This percentage shows a user's net earnings or costs from using the platform. It combines the interest earned from lending assets with the interest paid for borrowing assets. A positive number means a user is earning more interest than they are paying.
Health Factor: A crucial metric for borrowers, the Health Factor indicates how close your position is to being liquidated. The higher this number, the safer your position. If it approaches 1, you're at risk of liquidation.
Loan-to-Value (LTV) Ratio: This percentage indicates how much value a user has borrowed, relative to the value supplied as collateral. For example, if a user has supplied $1,000 worth of assets as collateral and borrowed $500, their LTV would be 50%.
Liquidation LTV: This is the maximum LTV a user's position(s) can reach before being susceptible for liquidation. If a user's current LTV reaches this threshold, their collateral may be liquidated to repay their loan.
It's important for users to regularly monitor their Health Factor. If it's decreasing, they should consider repaying some of their loan or adding more collateral.
Use Borrow Power wisely — just because one can borrow more, doesn't always mean they should.
Aim to keep loan-to-value (LTV) ratios comfortably below the Liquidation LTV to maintain a safe position.
The Net APY helps users understand if all of the positions held, in combination, on Bonzo Finance are profitable. A positive APY means a user is earning more than they're paying in interest. This does not factor in usage of borrowed funds for various DeFi strategies outside of Bonzo Finance.
