Category: Security Strategies

To avoid redemptions in the Liquid Loans protocol, it’s important to maintain a healthy collateral ratio relative to the rest of the Vaults in the system. Here’s a step-by-step guide to help you: Your Individual Collateral Ratio (ICR) is the ratio of the dollar value of your entire PLS collateral to your USDL debt.  2.…

A liquidation happens when a vault’s collateral ratio falls below 110% (in normal mode) and 150% (recovery mode). To avoid liquidation: