Utilisation Limit
Borrowing from the Minterest protocol is over-collateralised, meaning the amount a user can borrow is less than the amount they supply as collateral. The maximum proportion is known as the Utilisation Limit. The Utilisation Limit is always a fractional proportion of the collateral supplied and expressed as a percentage e.g. a borrower may not borrow more than 80% of their supplied collateral.
Utilisation Limits are specific for each market and are applied for each token pair in supply and borrow pools. As an example, if Bob supplies 100 USD in DAI and 100 USD in ETH, with relative Utilisation Limits of 30% and 50%, the maximum borrow value available will be the sum of 30 USD in DAI and 50 USD in ETH, or 80 USD in total.
Last modified 1mo ago