Not sure if this is the right place to ask, but just curious why the Liquidation Threshold for MATIC is so low (58%) compared to other assets like WBTC/ETH (78%)? Obviously it limits borrowing power, but also increased risk of liquidation. Is Polygon considered a riskier asset than other assets with higher thresholds? Just a newb curious to learn the thought process on how these are determined.
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yeah, seems like polygon swings more than those other two
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Volatility and secondary liquidity are the main reasons to define an LTV & LT for an asset.
While a qualitative asset, MATIC is massively less liquid & more volatile than ETH & BTC. Thus, it has lower LTV & LT.
These parameters are meant to lower the risk of failed liquidations and bad debt for the protocol.
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