DeFi & Yield

What is the loan-to-value (LTV) ratio in DeFi borrowing?

The loan-to-value (LTV) ratio in DeFi borrowing is the size of a loan expressed as a percentage of the collateral backing it. A protocol sets a maximum LTV that caps how much you can borrow against deposited assets. For example, a 50 percent maximum LTV lets you borrow up to 50 worth of assets against 100 of collateral. A higher LTV means less buffer before a falling collateral price pushes the position toward liquidation, and price swings make this risk real with no assured outcome. Qatobit emphasises unleveraged, methodology-driven exposure. See the approach.

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