DOI
10.34229/KCA2522-9664.26.3.9
UDC 519.6
L.V. Kovalchuk
G.E. Pukhov Institute for Modelling in Energy Engineering, National Academy of Sciences of Ukraine,
Institute of Physics and Technology of the National Technical
University “Igor Sikorsky Kyiv Polytechnic Institute,” Kyiv, Ukraine,
lusi.kovalchuk@gmail.com
O.M. Kulinich
National University of Life and Environmental Sciences of Ukraine, Kyiv, Ukraine,
o.kulinich@nubip.edu.ua
Y.M. Yemets
Educational and Research Institute of Physics and Technology of the National Technical
University “Igor Sikorsky Kyiv Polytechnic Institute,” Kyiv, Ukraine,
lizaemets0244@gmail.com
DEFINITION AND JUSTIFICATION OF THE PARAMETERS OF THE DeFi COLLATERAL
PROTOCOL AND CONDITIONS FOR LIQUIDATION OF THE COLLATERAL POSITION
Abstract. A general approach to determining the parameters of a collateralized protocol is considered, along with the development of an appropriate mathematical framework that accounts for all major risks. The following tasks are addressed: all key factors that traditionally affect an asset’s price and the size of payouts during the position liquidation procedure are identified; risks are incorporated and their potential impact on the price is assessed; the statistical data that must be collected and processed to obtain numerical characteristics of these risks are specified; relevant statistical data are collected across various decentralized platforms and, based on them, a liquidation condition for a collateral position is formulated and justified; the LTV value is determined and substantiated; numerical results for LTV are obtained for different pairs of assets.
Keywords: cryptoassets, DeFi-protocols, collateral protocols, loan-to-value (LTV), liquidation condition.
full text
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