when u take a loan of dusd using dfi as collateral?
Divide the current price of dfi by your current collateralization % then multiply by your chosen vault collateralization % (e.g 200%)
Hi sorry, intitutively it doesnt make sense to me. If my current collaterization % is the same as the chosen vault collateralization %, my liquidation price will be the same as the current dfi price
Does this mean that my collateral % cannot fall below the vault minimum collateral %? If it does, i get liquidated?
Yes! So be careful. Thats why if you chose 200%, and your collateralization drops below 300%, you wikk be warned that it is at risk
Ah i see, thanks, i just switched my vault from 350% to 200% for safety margin. 😅
I believe it is to encourage users to constantly over collaterise so that adverse market movements would not cause a domino effect of mass liquidations. Especially important as this feature is newly rolled out -don't want an event like that in the beginning
depending on the tokens you're using for collateral, might help to also figure out what pricepoints your vault liquidates at, then set alerts for those 😅
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