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StellaPrime.com
  • 🇱🇷FAQ @stellaprime_bot ENG
  • 🇷🇺FAQ @stellaprime_bot RUS
  • 🌟Getting Started
  • 🤝Pay-As-You-Earn (PAYE) Model
  • Protocol Mechanism
    • 🔖How Stella Works?
    • 🏠Stella Lend
    • - Why Stella Lend is Unique?
    • - Yield Vault
    • - Supported Assets
    • 🤑Stella Strategy
    • - Why Stella Strategy is Unique?
    • - Get your own NFT.
    • - Collateral Factor
    • - Borrow Factor
    • - Price Range
    • - Price Impact
    • - Supported Strategies
    • - Leverage
  • 💰Yield Calculation
  • - Yield Sharing
  • 👁️Contacts
    • Contacts
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  • Collateral Factor by LP
  • Extra Collateral
  1. Protocol Mechanism

- Collateral Factor

Previous- Get your own NFT.Next- Borrow Factor

Last updated 1 year ago

Stella uses the concept of LP as collateral to enable undercollateralized loans. By assigning a collateral factor to each LP, the protocol can determine how much credit is gained from collateralizing an asset. An LP's collateral factors depend on the volatility, trustworthiness, and data backtesting of relevant assets.

Collateral Factor by LP

Extra Collateral

Stella allows user to add extra collateral to help better a position's Debt Ratio. Extra collateral can be any token within an asset pair/LP. These newly added collaterals will not be taken into account when calculating the position's yield.