noticed a pricing detail in aave v4 last night that i hadnt actualy thought through for vaultbtc specificaly, and honestly? 😂 turns out not all collateral costs the same to borrow against, even within the same market.

so aave v4 has this thing called a user risk premium, which is basicaly an extra interest charge stacked on top of the shared borrow rate, based on how risky your specific collateral is judged to be. its weighted by how much of that collateral is actualy needed to cover your debt, and it recalculates dynamicaly whenever you withdraw, borrow, or the system does a refresh. so a zero percent premium just means you pay the plain base rate, but something like a fifty percent premium means youre paying fifty percent more interest on top of whatever the base rate happens to be. its not a flat market wide number anymore, its priced per position based on collateral quality.

what i keep coming back to since last night is where vaultbtc actualy lands on that scale. it's segregated, cant be partialy liquidated, and settles through that whole slower bitcoin timeline i wrote about a while back, so does that count as higher risk in this premium calculation compared to a normal liquid erc20 asset, or does the underlying strength of bitcoin itself pull that back down. i havent found anywhere that actually states how vaultbtc gets rated on this specifically, or whether that rating is even visible to a depositor before they borrow against it.

still, pricing borrow cost to actual collateral risk instead of one flat number for everyone is a genuinly fairer design. safer collateral should cost less to borrow against, and this actualy does that instead of just claiming it.

honestly dont know if vaultbtc ends up getting priced as safer collateral here or if the bitcoin side complexity pushes that premium up??
🤔

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