Decentralized Finance (DeFi) has flourished in this day and age with billions of locked assets. As being the world’s first decentralized marketplace for cross-chain lending, Trava has been forming adequate standards to manage the risks emerging from the hyper-connected ecosystem.
The following documentation illustrates the protocol parameters for the purpose of alleviating the fundamental risks that may arise. These are the parameters defined when creating the Pool such as borrowing/lending interest rate, liquidity threshold, Loan to Value ratio, Health Factor, Liquidation penalty, and Reserve Factor. These parameters are of paramount importance to users when participating in Pool operations.
Pool parameters are divided into two groups: interest rate parameters and risk parameters.