for each asset more visible? similar to how aave shows for example. Also can you please let me know collateral ratio for btc?
On kava lend all assets have a collateral ratio of 200% (50% LTV) except USDX which is 400% (25% LTV)
So LTV and liquidation treshold is same 50%? what is the liquidation penalty?
Yes liquidation occurs when the borrow balance exceeds that LTV. On Kava Lend all your supplied assets combine to give a single borrow amount, which if exceeded results in all the supplied assets liquidated (on kava mint each asset is separate to the other assets) On Kava Lend there is a penalty of 2% of the supplied asset value
so if I only supply BTC and borrow stables, in worst case of liquidation I can lose maximum 2% of my btc?
All the btc would go into auction to recover the value of the borrowed assets. You would normally get close to full market value in auction with any excess BTC returned to you. You would now own the borrowed assets which you could trade to buy back most of the BTC that was sold off. You would probably be slightly worse off than 2% depending on the market conditions during the auction period, for example if the BTC price was low during the auction period and recovered sharply immediately after the auction your stablecoins would not be able to buy back as much of the BTC as lost but the reverse might happen and gain
Great questions you are asking! Can KAVA please post the liquidation guidelines (process and what happens) very clear and easy to get to. I as well wonder what exactly when and what happens at liquidation. It should be very clear (for all products - including Lend) and people should not have to guess. Thank you! 🙏
This guide covers some of the details https://medium.com/kava-labs/liquidation-on-kava-and-hard-f5122d9fac58
well noted. thank you. I think it would be good to have the numbers added on the website so it would be easier for average user. Also why are all assets set to 50% LTV? I could argue that BTC is likely to be more stable than other alts. Therefore other lending platforms offer higher LTV for example aave has 60%.
Thank you. On Kava Lend, if i am supplying more than 1 asset, I noted there is also an index of Borrow Limit Used for each individual asset, can i just ignore that individual limit (and just focus monitoring the combined number to avoid liquidation) if all supplied assets combined to a single Lend and Borrow indicator? seems the individual limit number confused the UI. One more question, on the Kava Lend, for each asset, eg. for Supply : there are 2 numbers (upper and lower row), i noted some asset with the same upper and lower one, some doesn't, what does those 2 numbers actually referring to? Thank you.
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