《Little White's Guide to Avoiding Pitfalls: How to Calculate the Safety Margin for Borrowing on Lista》
I see many people asking, "How much collateral is safe?" Taking BNB as an example, it is currently $930. On @ListaDAO , the liquidation line for BNB is usually around a collateralization rate of about 110%.
If you deposit 1 BNB and borrow 400 USD1, your collateralization rate is (930/400)100%=232.5%, which is very safe. Even if BNB drops to $600, the collateralization rate will still be (600/400)100%=150%, which is far from liquidation.
Golden Rule: Always keep the collateralization rate above 150%. Don't be greedy and borrow the maximum; leave yourself enough of a buffer. The advantage of Lista is the low interest rates, so you don't need to borrow too much to engage in arbitrage; safety first.
