🧵ADA vs USDA — Same Loan, Different Risk Borrowing $100 USDM on Liqwid? You can use ADA or USDA as collateral—but your risk exposure isn’t the same. Let’s unpack why.👇

1/ You borrow $100 USDM. Your Health Factor is set to 2.0, with Safe Mode on. Here’s the exact collateral used in both scenarios: 🔵 Collateral: 345.98 ADA (at ~$0.29/ADA) → ~$100 🟢 Collateral: 250.01 USDA (at $1.00) → $250.01 Both yield the same Health Factor… but the risk? Not the same.

2/ Why? Price behavior. • ADA is volatile. It can drop 10%+ in a day. • USDA is stable. Pegged to $1. Both assets have similar Max LTVs (~80%). But ADA's price moves, affecting your collateral value and health factor in real time. USDA’s doesn't, as the collateral value is staying the same.

3/ What happens if the price drops? Your 345.98 ADA → now worth ~$90 🔻 LTV jumps, Health Factor drops ⚠️ You’re closer to liquidation With USDA? No price change → your HF stays steady. Same loan. Different volatility exposure.

4/ This is why we use Health Factor LTV tells you where you start. Health Factor tells you where you're headed. It reacts dynamically to: • Asset price changes • Market utilization • Borrowed amount • Collateral quality

5/ Liqwid’s Risk Framework helps manage this: Each asset’s LTV is set using: ✅ Volatility scoring ✅ Liquidity analysis ✅ Oracle safeguards ✅ Governance oversight You’re not flying blind. The system is designed to protect you.

6/ Want to try it yourself? Head to: 👉 Choose different collateral types, adjust the sliders, and see how your Health Factor changes in real time. ⚖️ Borrowing is easy. Managing risk is the real skill. Learn the tools. Master the mechanics. Stay in the game. 🔗 Learn more: 📘 🎓 #DeFi #Cardano #LiqwidFinance #CryptoRisk #HealthFactor

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