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You can now add collateral to your loan when you borrow on Sovryn!
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The intended release date for this feature was to be next week, but in light of recent and ongoing market conditions, we thought it pragmatic to expedite it in the current development cycle and ship it early.
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At times of uncertainty like these in the markets, one of your top priorities should be to preserve capital. In the past 24 hours, the price of bitcoin has dropped well below the strong psychological support level of $30,000.

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The funds you deposit to the protocol when taking out a loan is called collateral. The value of collateral against the value of the loan is called a collateral ratio. Currently, an initial collateral ratio of 150% is required when borrowing on the protocol. When the value of the deposited collateral falls below 115%, a gradual liquidation of the collateral is initiated, meaning you must maintain a minimum of 1.15x the loan amount in collateral. Liquidation is the point at which the collateral you put down is sold to cover the risk of defaulting on the loan. This gradual liquidation of collateral can result in the complete depletion of the borrower’s deposited funds, which is never a pleasant experience.

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During normal operation, Zero requires a minimum RBTC collateral ratio of 110% of the loan. A safer collateral ratio is at least 150% (67% loan-to-value). These levels are far below the requirements of most centralized bitcoin-backed lending products.
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