Collateralization and Loan Calculation #6
Description
Description:
To support lending and borrowing, the protocol must implement a robust collateralization system. Loans must be backed by collateral, with proper liquidation mechanisms in case of default.
The task is completed when:
- Users must lock collateral before borrowing.
- Loan-to-Value (LTV) ratios are dynamically calculated based on the asset.
- A liquidation system triggers when collateral value drops below the required threshold.
- Smart contracts automatically enforce liquidation conditions and distribute recovered funds accordingly.