Asset Risk

Each asset in the ParaSpace 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 ParaSpace will support as deposit. This parameter limits potential concentration risk in a given asset where ParaSpace 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 ParaSpace 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
60%
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
30%
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