Liquidations and Fees

SuperStake positions have a low liquidation risk. Users can keep their positions open for a long period of time without worrying about price volatilty

When a 1.3x position is opened, an initial borrow position with 30% LTV is started on iA Borrow. However, as the purchased iASOL is added back as collateral, the position LTV drops to 23%.

Currently, IA Borrow has a liquidation LTV of 66%. With this liquidation LTV, the liquidation price for 1.3x positions is is about 34.6 % of the entry price, e.g., for $200/SOL entry price, the liquidation price is ~$69.2/SOL. For 1.5x positions, the liquidation price is 50% of the entry price

In the soon future, IA Borrow will allow a higher liquidation LTV (80%) for SuperStake positions compared to the 66% liquidation LTV for normal iA Borrow Positions . With 80% liquidation LTV, the liquidation prices go even lower. For 1.3x positions, it becomes 24% of the entry price, e.g., for $200/SOL entry price, the liquidation price is ~$50/SOL. For 1.5x positions the liquidation price becomes 40% of the entry price.

Fees

There are no fees to open or close SuperStake positions. However, it should be noticed that the underlying iA Borrow utilizes a yield-sharing mechanism for the minted iAUSD. The yield sharing mechanism directs a small portion of the staking yield to the minted iAUSD. For 1.3x SuperStake position, about 18% of the staking yield is directed to the minted iAUSD. For 1.5x positions, ~20% of the staking yield is shared with iAUSD. Considering that iASOL provides ~10% staking APY, the cost APY of yield sharing is ~2%