APY stands for Annual Percentage Yield.
APY stands for Annual Percentage Rate
The Current Size Market corresponds to the TVL, which is the Total Locked Value on the platform
The threshold of a borrow position that will be considered undercollateralized and subject to liquidation. If a collateral has a liquidation threshold of 80%, it means that the loan will be liquidated when the debt value is worth 80% of the collateral value. The liquidation threshold is specified per collateral and expressed in percentage points.
Represents the ratio between total collateral multiplied by the liquidation threshold, and the borrowed principal. When the Health Factor goes below 1, the loan is undercollateralized and can be liquidated.
LTV = Loan / Collateral Value * 100%
A liquidation is a series of events that can occur when a borrower**'**s Health Factor reaches 1. The Health Factor is a numeric representation of the safety of deposited assets relative to borrowed assets. The higher the Health Factor is, the safer your deposited funds are against a liquidation scenario. A liquidation might be triggered because the value of your collateral drops, the value of your borrowed assets increases, and/or because of the accumulated interest owed on a debt.
The concept of "longing an asset" is fairly simple: A user supplies a certain asset, borrows a different one and then uses the borrowed funds to obtain more of the supplied asset to leverage its position. Doing this allows for greater profits if the market moves in the predicted direction.
Shorting is the opposite concept of longing. After depositing some stable coin, a user can borrow wETH and wBTC and use your newly borrowed assets for shorting, which means selling them and buying them back later at a better price) in order to buy them back at a later time and to obtain more wETH or wBTC for its position.