11 times, increasing their exposure to price changes. This is possible because PUSD can be borrowed against Matic, sold on the open market to purchase more Matic — rinse and repeat.*
110%. A minimum debt of
100.00 PUSDis required.
0.5%under normal operation. The fee is
0%during Recovery Mode. A
10 PUSDLiquidation Reserve charge will be applied as well, but returned to you upon repayment of debt.
baseRate. The fee rate is confined to a range between
5%and is multiplied by the amount of liquidity drawn by the borrower.
0.5%and the borrower draws
4,000 PUSDfrom his open Trove. Being charged a fee of
18.91 PUSD, the borrower will obtain
3,781.09 PUSDafter the Liquidation Reserve and issuance fee are deducted.
110%. So if your Trove has a debt
10,000 PUSD, you would need at least
$11,000worth of Matic posted as collateral to avoid being liquidated.
9.09% (= 100% * 10 / 110)of your collateral’s Dollar value.
10 PUSDis set aside as a way to compensate gas costs for the transaction sender in the event your Trove being liquidated. The Liquidation Reserve is fully refundable if your Trove is not liquidated, and is given back to you when you close your Trove by repaying your debt. The Liquidation Reserve counts as debt and is taken into account for the calculation of a Trove's collateral ratio, slightly increasing the actual collateral requirements.