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Collateralised borrowed limit increase
When you're an investor that has the best intentions towards the health of the protocol. You know that the wallet limits that are imposed on you are outrageous. It limits your potential to participate in Excavate Finance.
That's frustrating for you, but since we operate in a trust-less manner we have no way of verifying that your intentions are and will be towards the good of the protocol.
"Collateralised borrowed limit increase" is our solution to this problem.
To increase your wallet limit, you're simply required to lock up your $BUSD. The higher wallet the limit you seek, the more $BUSD you will have to lock. As you choose the limit you wish to have in addition to your existing wallet limit, you will also be given a liquidation limit.
Example: If your liquidation limit is 0.4 then if your wallet score is ever equal to or goes below 0.4, your locked $BUSD will be liquidated and goes to the treasury.
You can release your $BUSD anytime your score is above your liquidation limit and have your excess limit revoked.
With this system, you can invest more into the protocol without the protocol having to fear that you'll negatively impact it. This is similar to getting a loan on Aave where you can borrow assets (borrowing wallet limit in our protocol) against a locked asset (locking $BUSD in our protocol).
Last modified 6mo ago