Collateral Parameters
Base Dollar accepts two types of collateral: standard single-asset collateral and Aerodrome LP token collateral.
Standard Collaterals
| Asset | Envisioned LTV |
|---|---|
| WETH | 90.91% |
| wstETH | 90.91% |
| rETH | 90.91% |
| cbBTC | 90.91% |
| cbETH | 90.91% |
Standard collaterals have:
- User-defined interest rates
- Redemptions enabled
LP Token Collaterals (Aerodrome)
LP token collaterals are in separate branches with unique mechanics:
- Auto-staking in Aerodrome gauges for AERO rewards
- 10% default AeroManager claim fee, capped at 20%
- Borrow rate weighted AERO rewards, boosted for LP borrowers with above-average rates
- Redemptions can be disabled
Aerodrome LP-token collateral branches are coming soon. Pair-specific parameters will be published before launch.
Key Differences
| Feature | Standard Collaterals | LP Token Collaterals |
|---|---|---|
| Redemptions | Yes | Configured per branch; Can be protected from redemptions |
| Interest rate | Set by borrower | Set by borrower; AERO rewards weighted by rates |
| AERO Rewards | No | Yes, to borrowers |