Borrow Caps
We place a cap on how much can be borrowed against a token in three ways:
Against the market cap of that token. Although we consider liquidity to be a much more relevant data point for borrow caps than market cap.
Against the liquidity of that token. This will be quantified in terms of CEX/DEX liquidity, and how much liquidators could sell without triggering the liquidation price.
Against the rest of the Brunch portfolio. This will be impossible to do at first, since some token has to start as 100% of the collateral backing, and we’ll add more as soon as we can. But the goal is to minimize the debt against any particular token, as a percentage of total debt.
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