Collateral Rate by Asset Group

Collateral Rate by Asset Grouping

Sumer determines the ability to borrow assets or mint SuTokens based on the group of asset (homogeneous and heterogeneous) supplied as collateral.

Borrow/ Mint within same asset group = Higher LTV similar risk profile

Borrow/ Mint across different asset group = Lower LTV due to varying risk profile

Collateral Rate or LTV

Collateral Rate (i.e. Loan-to-Value ratio) signifies the value available to be borrowed/ minted for each collateralized asset.

A Collateral Rate of 75% means that the users can only borrow up to 75% of the value of their collateralized assets.

The Collateral Rate for each asset is set based on several inherent characteristics of the asset, such as availability in the reserve, normalized volatility and the asset’s liquidity in the market.

NOTE: These ratios and their parameters will be determined by the Sumer Team at launch. As the protocol matures and the necessary framework is in place, the governance of these parameters will be opened to the community via Sumer’s governance process.

Intra Collateral Rate or LTV

The maximum value of asset that can be borrowed when collateral and borrowing asset belong to the same homogeneous group

For e.g. Borrowing ETH by supplying stETH

Mint Rate

The maximum value of SuToken that can be minted when collateral and SuToken asset belong to the same homogeneous group

By design, The Mint Rate has the highest LTV for supplied assets (close to 1)

For e.g. Minting suETH by supplying ETH

Inter Collateral Rate or LTV

The maximum value of asset that can be borrowed or minted when collateral and borrowing asset belong to the different heterogeneous group

For e.g. Borrowing ETH by supplying USDC or Minting suETH by supplying USDT