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	λ_t	Twyne loan-to-value ratio
Litepaper	λ_twyne	Simplified notation
Solidity	twyneLTV	Calculated as maxRepay / 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	λ̃_t	Twyne liquidation LTV threshold (tilde indicates liquidation)
Litepaper	λ^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	λ̃^max_t	Maximum allowed Twyne liquidation LTV
Litepaper	λ^liq_max_twyne	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	λ̃_e	External protocol’s liquidation threshold
Litepaper	λ^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