Loan-to-Value (LTV) Variables

These parameters control when positions can be liquidated and how much can be borrowed. Understanding their relationships is crucial for grasping Twyne’s dual-LTV system.

Twyne LTV (User Perspective)

Context	Notation	Description
Whitepaper	$\lambda_t$	Twyne loan-to-value ratio
Litepaper	$\lambda_{twyne}$	Simplified notation
Solidity	twyneLTV	Calculated with basis point precision 1e4 * USD(maxRepay) / USD(userCollateral)
Plain English	The borrower’s effective LTV considering only their own collateral

Formula: λ_t = B / C

External LTV (Protocol Perspective)

Context	Notation	Description
Whitepaper	λ_e	External loan-to-value ratio
Litepaper	λ_ext	External protocol’s view
Solidity	Function call to external protocol	External protocol’s view
Plain English	How the external lending protocol sees the position’s LTV

Formula: λ_e = B / (C + C_LP)

Twyne Liquidation LTV

Context	Notation	Description
Whitepaper	$\tilde{\lambda}_t$	Twyne liquidation LTV threshold (tilde indicates liquidation)
Litepaper	$\tilde{\lambda}^{liq}_{twyne}$	User-selected liquidation parameter
Solidity	twyneLiqLTV	Stored as basis points (e.g., 9300 = 93%)
Plain English	The Twyne LTV at which the position becomes liquidatable internally

Implementation Note: Users select this value within protocol-defined bounds.

Maximum Twyne Liquidation LTV

Context	Notation	Description
Whitepaper	$\tilde{\lambda}^{max}_t$	Maximum allowed Twyne liquidation LTV
Litepaper	$\tilde{\lambda}^{max}_t$	Protocol-enforced upper bound
Solidity	maxTwyneLiqLTV	Stored in VaultManager per collateral type
Plain English	The highest liquidation LTV a user can select for their position

External Protocol Liquidation LTV

Context	Notation	Description
Whitepaper	$\tilde{\lambda}_e$	External protocol’s liquidation threshold
Litepaper	$\lambda^{liq}_{ext}$	Underlying protocol’s liquidation LTV
Solidity	liqLTV_external	Retrieved from external protocol
Plain English	The LTV at which the external protocol (e.g., Euler) would liquidate