The objective of this section is to address the parameters in the protocol.
What does each Parameter mean?
(also known as Loan-To-Value Ratio)
The amount a user can borrow for each market as a function of borrow amount divided by their collateral provided. For example, if the collateral factor for USDC is 80%, the maximum that can be borrowed is $0.80 against each $1 of USDC.
The percentage of borrower's interest that accrues to Bastion's Treasury. A reserve factor of 20% means that 20% of the interest paid on the asset accrues to Bastion.
The incentive given to liquidators to perform liquidations and keep the protocol solvent. A liquidation incentive of 10% means that liquidators will receive 10% of the borrower's collateral on liquidation.
The maximum amount that can be liquidated in a single transaction. For example, a close factor of 50% means that a maximum of 50% of a liquidatable account's borrow can be repaid in a single liquidation transaction.
The maximum amount that a user can borrow with the assets they have currently supplied and collateralized.
*protocolSeizeShareis 3%. This is the percentage of an account's liquidated collateral that is added to reserves, at the expense of the liquidator. The goal is to mitigate the risk of the protocol going insolvent due to cascading liquidations.