Asset Risk

Each asset in the Parallel protocol has specific parameters that influences how they can be supplied and borrowed.

  • Collateral - Can this asset be used as collateral against which to borrow?

  • Collateral Factor (CF) or Loan-to-Value (LTV) - What is the maximum amount that can be borrowed? It is represented as a % with numerator equal to Max Amount Borrowed/Value of Supplied AssetMax \ Amount \ Borrowed/Value \ of \ Supplied \ Asset. We will often refer to this value as Collateral Factor and abbreviate as CFCF.

  • Liquidation Threshold (LT) - This represents the point when the asset would start to go through the liquidation process. It is represented as a % with numerator equal to Total Debt/Value of AssetTotal \ Debt/Value \ of \ Asset. The difference between the CF and Liquidation Threshold can be considered as the safety cushion for borrowers.

  • Liquidation Bonus - The amount of additional collateral that liquidators receive / are discounted for purchasing assets on liquidation. Represented as percentage of the collateral purchased.

  • Supply Cap - The maximum amount in a given token which Parallel will support as deposit. This parameter limits potential concentration risk in a given asset where Parallel controls an outsized proportion of its total circulating supply. We target approximately 1% of total circulating supply of riskier assets.

  • Borrow Cap - The maximum amount in a given token which Parallel will allow to be borrowed. If Borrow Cap is below Total Debt in a given token there will be no forced liquidation but no new borrow positions may be opened.

For each wallet the maximum CF is calculated as the weighted average of the CF's of the collateral assets and their value:

CFAccount=i=1iCollateraliinETH×CFiTotalCollateralinETHCF_{Account} = \frac{ \sum^i_{i=1}{Collateral_i \: in \: ETH \: \times \: CF_i}}{Total \: Collateral \: in \: ETH \:}

For each wallet the Liquidation Threshold is calculate as the weighted average of the Liquidation Thresholds of the collateral assets and their value:

LiquidationThreshold=i=1iCollateraliinETH×LiquidationThresholdiTotalCollateralinETHLiquidation \: Threshold= \frac{ \sum^i_{i=1}{Collateral_i \: in \: ETH \: \times \: Liquidation \: Threshold_i}}{Total \: Collateral \: in \:ETH\:}

The table below shows a summary of the latest values:

Asset
Symbol
Collateral
Max CF
Liquidation Threshold
Liquidation Bonus
Supply Cap
Borrow Cap

Bored Ape Yacht Club

BAYC

Yes

50%

79%

N/A

1000 BAYC

N/A

Mutant Ape Yacht Club

MAYC

Yes

50%

73%

N/A

2000 MAYC

N/A

Bored Ape Kennel Club

BAKC

Yes

30%

65%

N/A

1000 BAKC

Sewer Pass

SEWER

Yes

0%

N/A

N/A

N/A

CryptoPunks

PUNK

Yes

60%

72%

N/A

100 Punk

N/A

Azuki

AZUKI

Yes

50%

71%

N/A

100 AZUKI

N/A

Doodles

DOODLE

Yes

35%

78%

N/A

100 DOODLE

N/A

Clone X

CLONEX

Yes

35%

65%

N/A

100 CLONEX

N/A

Moonbirds

BIRD

Yes

30%

65%

N/A

100 BIRD

N/A

Meebits

MEEBIT

Yes

30%

65%

N/A

200 MEEBIT

Pudgy Penguins

PUDGY

Yes

50%

65%

N/A

100 PUDGY

Otheredeed

DEED

Yes

35%

65%

N/A

1000 DEED

N/A

Otherdeed Expanded

EDEED

Yes

30%

65%

N/A

1000 EDEED

Vessels

VESSEL

Yes

30%

65%

N/A

1000 VESSEL

Kodas

KODA

Yes

30%

65%

N/A

1000 KODA

DeGods

DEGOD

Yes

30%

65%

N/A

1000 DEGOD

BEANZ

BEANZ

Yes

30%

65%

N/A

1000 BEANZ

Chromie Squiggles

SQUIGGLE

Yes

20%

65%

N/A

1000 SQUIGGLE

USDC

USDC

Yes

80%

85%

5%

None

Supply

USDT

USDT

Yes

75%

80%

5%

None

stETH

stETH

Yes

72%

83%

5%

47,000

wstETH

wstETH

Yes

72%

83%

5%

47,000

DAI

DAI

Yes

75%

80%

5%

None

Supply

BLUR

BLUR

Yes

25%

35%

5%

5,000,000 BLUR

Ether

ETH

Yes

82.5%

85%

5%

None

Supply

Lido Staked ETH

stETH

Yes

73%

75%

5%

None

Supply

ApeCoin

APE

Yes

50%

70%

5%

18,062,500 APE

Supply

cAPE

cAPE

Yes

50%

70%

5%

18,062,500 cAPE

Last updated