I will be the guy to ask this. Hope it doesn’t bother with such a noob question haha. So still being new to Defi. What exactly happens when rewards go from 20% to 35%? Can someone show examples with pictures how that would display in Balanced? A visual explanation would really help us new to Defi!
Maybe even showing visually what happens when collateral locked is increased too
I don’t have pictures, but a 20% LTV (loan to value) just means that you can only take a maximum loan of 20% of the value of your collateral in USD in order to keep getting rewards. So, the proposal is to allow for a 35% LTV.
So, as of now if you have $1,000 USD of ICX the max loan you can take out is 200 bnUSD and still get rewards. This proposal would allow for up to 350 bnUSD loan with the same $1,000 USD of ICX collateralized: $1,000 * 0.35 = 350.
So, you can take a greater percentage loan and still receive rewards, and the point at which collateral is locked would also increase to that 35% LTV.
If your loan becomes greater than 35% LTV, then your collateral will be locked and you will be inelligible for rewards.