Collateral Factor

Stella uses the concept of LP as collateral to enable undercollateralized loans. By assigning a collateral factor to each LP, the protocol can determine how much credit is gained from collateralizing an asset. An LP's collateral factors depend on the volatility, trustworthiness, and data backtesting of relevant assets.

Collateral Factor by LP

The same collateral factor will be applied to the same LP at every fee tier.

LP Token	Protocol	Collateral Factor
WETH/USDC.e	Uniswap V3	0.92
WETH/USDT	Uniswap V3	0.92
WETH/ARB	Uniswap V3	0.92
ARB/USDC.e	Uniswap V3	0.92
WETH/WBTC	Uniswap V3	0.92
RDNT/WETH	Uniswap V3	0.92
PENDLE/WETH	Uniswap V3	0.92
WETH/GMX	Uniswap V3	0.92
STG/WETH	Uniswap V3	0.92
GNS/WETH	Uniswap V3	0.92
GNS/USDC.e	Uniswap V3	0.92
JOE/WETH	Trader Joe V2	0.92
WETH/USDC.e	Trader Joe V2	0.92
ARB/WETH	Trader Joe V2	0.92
eETH Sep-26-2024	Penpie	0.95
rsETH Sep-26-2024	Penpie	0.95
wstETH Jun-26-2025	Penpie	0.95

Extra Collateral

Stella allows user to add extra collateral to help better a position's Debt Ratio. Extra collateral can be any token within an asset pair/LP. These newly added collaterals will not be taken into account when calculating the position's yield.

Asset	Collateral Factor
WETH	0.92
USDC	0.92
USDT	0.92
ARB	0.92
WBTC	0.92
RDNT	0.92
GMX	0.92
PENDLE	0.92
JOE	0.92
STG	0.92
GNS	0.92