and birrowing with 35% LTV, sfrxapr never fell below the borrowing frax interest. Keeps compounding. But my liquidation price keeps moving upwards. Shouldnt it be moving downwards given sfrxeth yields faster than the loan? What am i missing here?
If you are borrowing FRAX with sfrxETH collateral the oracle keeps track of the rising value of sfrxETH. So as the sfrxETH price rises, if you keep borrowing more to keep the LTV constant at 35% then your liquidation price rises too. But if you only borrow once and don't touch your loan at all, then your LTV should slowly go down and your loan get repaid effectively over time just like you're expecting.
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