A lending pool with $126 million lent out, or 90.59% of the total.
The remaining 9.41% is the entire buffer. The liquidation threshold is set at 91.5%.
The collateral is a principal token that matures in 38.7 days. It’s trading at a 1.41% discount on the secondary market, implying an annualized yield of 12.20%.
This isn’t a model projection. On August 25 this year, a similar product fell 3% in a single day, triggering $36 million in liquidations.
There’s a gap of 1.59 percentage points between 1.41% and 3%.
I’m watching all three tripwires. They’re all green right now. Green doesn’t mean safe; it just means we haven’t reached the threshold yet.
The remaining 9.41% is the entire buffer. The liquidation threshold is set at 91.5%.
The collateral is a principal token that matures in 38.7 days. It’s trading at a 1.41% discount on the secondary market, implying an annualized yield of 12.20%.
This isn’t a model projection. On August 25 this year, a similar product fell 3% in a single day, triggering $36 million in liquidations.
There’s a gap of 1.59 percentage points between 1.41% and 3%.
I’m watching all three tripwires. They’re all green right now. Green doesn’t mean safe; it just means we haven’t reached the threshold yet.
