Collateral Parameters
Check out this blog on how various collateral ratio systems work.
MCR is the primary requirement for each trove, but there are also overall global requirements for each branch.
| Asset | Initial Debt Limit | CCR_Tag | MCR | SCR | CCR | C_S_dif | Max LTV | Liquidation Penalty |
|---|---|---|---|---|---|---|---|---|
| ETH | $100,000,000 | ETH | 110 | 110 | 150 | 40 | 90.91% | 5% |
| wstETH | $100,000,000 | LST | 110 | 110 | 160 | 50 | 90.91% | 5% |
| rETH | $100,000,000 | LST | 110 | 110 | 160 | 50 | 90.91% | 5% |
| SNT | $5,000,000 | SNT | 160 | 160 | 185 | 25 | 62.50% | 5% |
| LINEA | TBD | TBD | TBD | TBD | TBD | TBD | TBD | TBD |
| sGUSD | TBD | TBD | TBD | TBD | TBD | TBD | TBD | TBD |
BCR is MCR + 10% in all cases.
Collateral Assets on Status Network
Firm Money supports collateral assets native to Status Network:
- ETH — Ether, the base L1 asset
- wstETH — Wrapped Staked ETH (Lido)
- rETH — Rocket Pool ETH
- SNT — Status Network Token, the native token of the Status ecosystem
- LINEA — Coming soon
- sGUSD — Coming soon
Debt Limit
For security, the debt limit can be set to 0 by governance, in case of emergency. This would allow only paying back debt, and no new borrowing. Governance can then later increase up to the initial debt limit, or up to 2x the current debt limit.