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Update x/leverage/README.md
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Co-authored-by: Robert Zaremba <robert@zaremba.ch>
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toteki and robert-zaremba authored Jul 26, 2023
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Expand Up @@ -315,7 +315,7 @@ In practice, the following calculation (which reduces to the logic above in simp
liquidationThreshold := effectiveLiquidationThreshold * GetCollateralValue(borrower) // dollar value
```

This utilizes the borrow limit, which has already been computed with special asset pairs and borrow limit considered, and the token parameters of borrower's collateral:
This utilizes the borrow limit, which has already been computed with special asset pairs, and the token parameters of borrower's collateral:

- The average (weighted by collateral value) collateral weights and liquidation thresholds of the borrower's collateral assets are collected.
- The distances from average collateral weight to average liquidation threshold and 1 are compared. (For example when `CW = 0.6` and `LT = 0.7`, then liquidation threshold is `25%` of the way from `CW` to `1`.)
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