Learning Notes | Decentralized Lending
① Under Aave’s rules, the health factor is the sum of each collateral asset’s value multiplied by its liquidation threshold, divided by the total borrowed value.
② The liquidation threshold for each type of collateral is generally higher than its loan-to-value ratio, so borrowing up to the limit still leaves a buffer before liquidation.
③ During periods of sharp market volatility, keep a close eye on the health factor. If necessary, add collateral or repay part of the loan promptly.
$AAVE 167.1（-3.9%）
#AAVE
① Under Aave’s rules, the health factor is the sum of each collateral asset’s value multiplied by its liquidation threshold, divided by the total borrowed value.
② The liquidation threshold for each type of collateral is generally higher than its loan-to-value ratio, so borrowing up to the limit still leaves a buffer before liquidation.
③ During periods of sharp market volatility, keep a close eye on the health factor. If necessary, add collateral or repay part of the loan promptly.
$AAVE 167.1（-3.9%）
#AAVE