LTV
Loan-to-value, and why no number is published yet.
ts
LTV = debtValue / collateralValueA maximum LTV is a statement about how far the protocol trusts its own valuation of the Stockpile under stress. Publishing one before the oracle policy exists would be publishing a guess.
What the number depends on
- Volatility of the basket legs
- Staleness of equity pricing outside market hours
- Depth available to a liquidator
- Redemption fee, which reduces recoverable value