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DEFI Yield Lending Compound Loan to Value Ratio on Ethereum

DeFi

The ratio of total outstanding borrowed value to the total value of collateral supplied on Compound's Ethereum lending markets.

Why it matters

To measure how heavily collateral deposited on Compound is being leveraged through borrowing.

How it is built

Dividing the total USD value of outstanding loans on Compound's Ethereum deployment by the total USD value of collateral assets supplied to the protocol.

What to watch

A rising loan-to-value ratio indicates borrowers are taking on more leverage relative to their collateral, increasing the protocol's exposure to liquidation risk during price drops.

Related metrics

DEFI Yield Lending Compound Loan to Value Ratio on Ethereum — DeFi · Cryp2Nova