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 TokenProtocolCollateral 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.

AssetCollateral 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

Last updated