LTV, Liquidation
The Loan to Value (LTV) ratio defines the maximum amount of currency that can be borrowed with a specific collateral. Itβs expressed in percentageS. E.g., at LTV=75%, for every 1 ETH worth of collateral, borrowers will be able to borrow 0.75 ETH worth of the corresponding currency. Once a loan is taken, the LTV evolves with market conditions.
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