@shinzwrld999
Collateral & Borrowing: The Core Mechanics šš°
At the heart of Rodeo is a simple but powerful system: users deposit collateral and borrow stablecoins against it to enter yield-generating strategies. Collateral acts as the safety layer, determining how much leverage a user can safely take on. Rodeo enforces conservative loan-to-value ratios and continuously monitors positions, ensuring borrowed funds stay within defined risk boundaries while deployed strategies work to generate returns
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š§± Collateral Deposits: Users lock assets like ETH or stablecoins as backing.
šµ Stablecoin Borrowing: Borrowed funds are used to amplify yield exposure.
š Loan-to-Value Controls: Limits are set to reduce liquidation risk.
š Continuous Monitoring: Positions are tracked on-chain in real time.
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