Troves and Collateral

Lyve offers unparalleled capital efficiency compared to other decentralized lending platforms. It allows your productive assets to continue yielding interest even when used as collateral. Borrowers can also leverage their positions to increase their exposure to their preferred LSTs. Additionally, Lyve has a fixed, one-time borrowing fee of 0.5% for positions longer than six months, incentivizing short-term borrowers with a partial refund mechanism.

Understanding Troves and LTV

A Trove is akin to a digital locker where users can deposit collateral and borrow $LYU tokens. Each Trove is connected to a unique Ethereum address and supports only one type of collateral. It maintains two balances: one for the collateral and another for the debt in $LYU. Your Loan-to-Value (LTV) ratio changes as you adjust these balances. A lower LTV ratio indicates a safer borrowing position, reducing the risk of liquidation.

Trove Statuses Lyve displays your "Trove Status" once a Trove is opened. "Inactive" appears if no LYU is borrowed, "Active" if LYU is borrowed and the Trove is not liquidated or redeemed, "Redeemed" if the Trove faces risky LTV levels, and "Liquidated" if the Trove is liquidated due to exceeding maximum LTV.

Collateral Ratios and Types

Lyve supports borrowing against multiple types of LST collateral. It's imperative to know the maximum LTV allowed for each asset to manage your Trove effectively. For instance, WETH has a maximum LTV of 90%

Fee Refunds and Fixed APR

Users who repay their debt within six months are eligible for a pro-rata refund of the initial 0.5% borrowing fee. This is controlled by smart contracts, ensuring transparency.

Stability and Decentralization

Lyve promotes decentralization by supporting a variety of minority liquid staking tokens. It uses Chainlink and Pyth as oracles, positioning itself advantageously for potential cross-chain expansions.

Additional Safeguards To maintain peg stability, Lyve will introduce a Liquity-like redemption mechanism post-launch. Also, Lyve only supports non-censorable assets to ensure the protocol's safety and align with its core values.