110%, it's cheap and more capital efficient than other borrowing platforms on Avalanche.
1 USDworth of collateral when the U.Token peg falls below
0.5%(except in Recovery Mode), which protects the redemption facility from being misused by arbitrageurs front-running the price feed. The borrowing fee is capped at
5%, keeping the system (somewhat) attractive for borrowers even in phases where the monetary is contracting due to redemptions. Other than that, the two fees are identical and are depicted as "Fee" in the following exemplary chart:
110%, you will receive more collateral assets in return with a very high probability. However, if collateral asset decreases in price and you maintain exposure, you may lose value in your total pool deposits.