
Parameters vary between markets and can change through governance proposals.
Risk Parameters
Maximum borrowing ratio relative to collateral value. A 75% LTV allows borrowing up to 75% of collateral value.
Point where positions become eligible for liquidation. Always higher than LTV to provide safety buffer.
Bonus percentage awarded to liquidators, deducted from borrower’s collateral.
Supply & Borrow Controls
Whether the asset can be borrowed
Maximum total supply allowed for the asset
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%)
Advanced / Additional Parameters
These additional parameters are used in protocols like Aave to provide finer control over reserve behavior:Portion of interest diverted to protocol / treasury
Whether this asset can be used as collateral for borrowing
Whether borrowing at stable rate is permitted
Whether the reserve is active (open for operations)
Whether the reserve is frozen (no new operations)
Whether the reserve / pool is in emergency paused state
If true, this asset is borrowed in isolation (limited scope)
Maximum allowable total debt (in this asset) under isolation / constraints
Whether this asset can be borrowed under isolated collateral mode
Amount of unbacked tokens (for accounting / minting)
Amount of interest to be minted / accrued to protocol treasury
Whether this asset is available to borrow via flash loans
Address of the price oracle for this reserve
Address of the interest rate strategy contract for this reserve