Asset Borrow Mapping

Each asset on Kinza Finance requires a detailed analysis to properly understand potential risk, and how a money market may be affected depending on what assets are borrowed against provided collateral. The potential risks of a collateral/borrow configuration involving collateral asset A with borrow asset B may be different than A:A or A:C.

To address this challenge, Kinza Finance has developed the capability to exercise control over permitting and constraining borrowable reserves for a given collateral.

Collateral Constraint

Borrow Mapping constrains potential borrow pairs for a given collateral. For example, as an Ethereum LRT token, a user with ezETH as collateral can only borrow ETH. This is done by blocking all other reserves from being borrowed by a user who enabled ezETH as collateral. This constraint isolates the risk of ezETH to the ETH pool.

The impact for the user would be:

  1. If you have already borrowed assets outside ETH, you cannot enable ezETH as collateral.

  2. If you have enabled ezETH as collateral, you cannot borrow assets outside ETH.

Newly supported assets will undergo thorough analysis in partnership with our security partners to determine the Borrow Mapping parameters and allowable borrow pairs.

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