Leverage LTV

Leverage Loan-To-Value (LTV) Automation for Hyperstaking

LTV represents the proportion of your loan compared to the assessed value of your collateral. Many lending protocols utilize a health factor indicator to illustrate the user's risk of liquidation. Due to the continual fluctuation in the market price of collateral, the LTV percentage undergoes constant changes. Introducing leverage can accelerate LTV adjustments beyond manual monitoring capabilities, underscoring the importance of automation. Definitive has developed a robust automation system aimed at optimizing yield for users while prioritizing their safety.

The Hyperstaking strategy demands careful leverage management against changing market conditions on-chain. Definitive integrates the same oracles as the underlying lending protocol and monitors the real-time on-chain liquidity conditions. If the price of the collateral or borrowed asset causes position LTV to drift, Definitive will automatically reduce the strategy’s position accordingly to stay safe from liquidation.

Users can monitor this under the Automation tab for all Hyperstaking strategies. The parameters include Target LTV, Current LTV, and Min/Max LTV.