💰Collateral
Collateral Weight
Each collateral has initial weight and total weight. Weight is used to calculate account value.
| Symbol | Total Weight | Initial Weight | Liquidation Bonus |
|---|---|---|---|
USDC | 1 | 1 | - |
USDT | 0.97 | 0.95 | 1% |
FRAX | 0.95 | 0.95 | 0.5% |
DAI | 0.95 | 0.90 | 1% |
ETH | 0.85 | 0.83 | 5% |
WBTC | 0.75 | 0.70 | 5% |
wstETH | 0.90 | 0.85 | 3% |
ARB | 0.80 | 0.80 | 3% |
Collateral Liquidation
If a user’s total account value drops below 0, the collateral will be at the risk of being liquidated.
Then, liquidators will repay the negative USD balance of users and liquidate their collaterals at a discounted price.
Liquidation is determined by price feeds from a Chainlink oracle, and its liquidation price is also calculated, using price feeds from an oracle as well.
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