It seems that a bull run might be forming.
18 Mar 2023, 13:24
It seems that a bull run might be forming. If you have deposited a stablecoin to borrow a volatile asset, you might want to keep an eye on your Health Factor (HF).
Health Factor decreases if:
- The value of your loan increases whilst the value of your collateral remains unchanged.
- The value of your collateral decreases whilst the value of your loan increases or remains unchanged.
*When HF equals zeros, you will be liquidated. *
Two examples for illustration purposes:
- If you've deposited XAI to borrow OHM, expect your HF to decrease if OHM rallies up.
- If you have deposited XAI, or USDC, to borrow ETH, expect your HF to decrease if ETH rallies up.
How to improve your HF?
- Repay part of your loan.
- Add more collateral.
PS: Since our silos consist of 3 assets, you can add two assets as collateral to borrow the third. The two collateral assets will have a combined Health Factor. *See screenshot of a user borrowing ETH with MAGIC+USDC collateral. *
Same news in other sources
118 Mar 2023, 13:24
Silo Finance telegram news 18 March 2023 13:24