Cryp2Nova

DEFI Yield Lending Makerdao Loan to Value Ratio

DeFi

The ratio of total outstanding debt issued to the total value of collateral locked in MakerDAO's vaults on Ethereum.

Why it matters

To measure how heavily collateral locked in MakerDAO is being leveraged to mint outstanding debt.

How it is built

Dividing the total USD value of debt outstanding across MakerDAO's Ethereum vaults by the total USD value of collateral assets locked in those vaults.

What to watch

A rising loan-to-value ratio signals vault owners are operating with thinner collateral buffers, raising the risk of cascading liquidations if collateral prices fall.

Related metrics

DEFI Yield Lending Makerdao Loan to Value Ratio — DeFi · Cryp2Nova