Liquidation Free Liquidity

Liquidation Free Liquidity is a 2 step process

• Lockup LPT tokens from large market cap pairs (wBNB/USDT,wBNB/BUSD, etc)

• A LTV ratio that does not risk the collateral even during steep corrections.

• Maintain a SAFU Fund that with time can act as an insurance fund.

The most important part of using LPT tokens as a means of collateral is working out the impermanent or divergence loss that can erode the value of the collateral. To make it clearer, we would link the impairment loss in terms of the correction that the erc20 token will undergo in order to derive a breakeven price of the erc20 token with respect to the LTV.