Market parameters overview showing risk controls and asset behavior settings
Market parameters control how each asset behaves within Edel Finance, defining risk levels, borrowing capacity, and liquidation thresholds.
Parameters vary between markets and can change through governance proposals.

Risk Parameters

ltv
decimal
Maximum borrowing ratio relative to collateral value. A 75% LTV allows borrowing up to 75% of collateral value.
liquidation_threshold
decimal
Point where positions become eligible for liquidation. Always higher than LTV to provide safety buffer.
liquidation_penalty
decimal
Bonus percentage awarded to liquidators, deducted from borrower’s collateral.

Supply & Borrow Controls

borrowing_enabled
boolean
Whether the asset can be borrowed
supply_cap
integer
Maximum total supply allowed for the asset
borrow_cap
integer
Maximum total borrowing allowed for the asset

Interest Rate Model

Rates adjust dynamically based on utilization using a two-slope model:
  • Base Rate: Minimum rate at 0% utilization
  • Slope 1: Rate increase before optimal utilization
  • Slope 2: Steeper increase after optimal utilization
  • Optimal Utilization: Target ratio (typically 80-90%)
Higher utilization → Higher rates → Incentivizes supply and repayments

Advanced / Additional Parameters

These additional parameters are used in protocols like Aave to provide finer control over reserve behavior:
reserve_factor
decimal
Portion of interest diverted to protocol / treasury
usage_as_collateral_enabled
boolean
Whether this asset can be used as collateral for borrowing
stable_borrow_rate_enabled
boolean
Whether borrowing at stable rate is permitted
is_active
boolean
Whether the reserve is active (open for operations)
is_frozen
boolean
Whether the reserve is frozen (no new operations)
is_paused
boolean
Whether the reserve / pool is in emergency paused state
siloed_borrowing
boolean
If true, this asset is borrowed in isolation (limited scope)
debt_ceiling
integer
Maximum allowable total debt (in this asset) under isolation / constraints
borrowable_in_isolation
boolean
Whether this asset can be borrowed under isolated collateral mode
unbacked
integer
Amount of unbacked tokens (for accounting / minting)
accrued_to_treasury
integer
Amount of interest to be minted / accrued to protocol treasury
flash_loan_enabled
boolean
Whether this asset is available to borrow via flash loans
price_oracle
address
Address of the price oracle for this reserve
interest_rate_strategy_address
address
Address of the interest rate strategy contract for this reserve

Next Steps