WEN Protocol can offer a collateral ratio as low as 115% by making liquidations immediate and more efficient. This allows WEN Protocol to require less collateral while still providing the same level of security as similar protocols that rely on slow auction processes to sell off collateral during liquidations.

Users have the option of selling the wenUSD you minted on the exchange for collaterals, then deposit and increase the collateral ratio in the Trove. This allows users to mint and sell more wenUSD, and by repeating this process you can reach your desired leverage level.

The maximum leverage ratio you can achieve is 7.66x, which is calculated by the formula:

MaximumLeverageRatio(MLR)=MCRMCRāˆ’100%=115%115%āˆ’100%=7.66Maximum Leverage Ratio(MLR) = \frac{MCR}{MCR-100\%}=\frac{115\%}{115\%-100\%}=7.66

where MCR is the Minimum Collateral Ratio.

Max leverage is only an EXTREMELY AGGRESSIVE example, leverage is for experienced users ONLY.

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