diff --git a/x/leverage/EXAMPLES.md b/x/leverage/EXAMPLES.md index bb64d69b0a..0772b158e1 100644 --- a/x/leverage/EXAMPLES.md +++ b/x/leverage/EXAMPLES.md @@ -48,10 +48,10 @@ Unpaired assets are the remainder after special pairs are created. Suppose I wish to compute `MaxBorrow(B)` on this position. Naively, I would simply see how much `B` can be borrowed in addition to the existing borrowed `D` by the unused collateral `D` and `A` at the bottom row. -This would consume `$140 D` collateral at a weight of `0.1` for a max borrow of `$14`. +This would consume `$140 D` collateral at a weight of `0.1` for a max borrow of `$14`. However, this actually underestimates the max borrow amount because asset `B` qualifies for a special asset pair. -(Note that `$10 A * 0.4` and `$160 D * 0.1` can cover a borrow of `$20 D` using their collateral weights, which is why `$140 D` collateral is the maximum we used above.) +(Note that `$10 A * 0.4` and `$160 D * 0.1` can cover a borrow of `$20 D` using their collateral weights, which is why `$140 D` collateral is the maximum we used above.) What will actually happen, is any newly borrowed `B` will be paired with collateral `A` in the highest priority special asset pair (and also any collateral `A` that is floating around in regular assets) before being matched with leftover collateral. @@ -106,8 +106,8 @@ Overall Result: - By moving normal assets to special pairs, leverage module can increase max borrow to `$15` - A more perfect algorithm would rearrange special pairs to give a result of `MaxBorrow(B) = $17.5`. -Practical notes on the edge case: +Practical notes on the edge case: - Max borrow will only be underestimated if an existing special pair can be cannibalized by new borrows into a higher weighted special pair. - A user can approach the theoretical limit by executing multiple max borrow transactions in a row without doing any calculations. -- They can also use a `MsgBorrow($17.5B)` directly if they know the final amount. \ No newline at end of file +- They can also use a `MsgBorrow($17.5B)` directly if they know the final amount.