Native Documentation
  • introduction
    • What is Native
    • About Native V2
    • Benefits for Key Players
  • SOLUTION
    • Native Credit Pool
    • Native Swap Engine
  • CONCEPTS
    • Orderbook
    • Firm Quote Orders
    • Auto Sign Orders
    • Swap Fees
    • Slippage
    • Base and Listed Assets
    • Single-Sided Liquidity Pools
    • Total Available Liquidity
    • Liquidity Pairing
    • Liquidity Bootstrapping
    • Health Ratio
    • Earning Fees and Incentives
    • Credit-Based Swap
      • Collateral Factor
      • PMM Credit
      • Settlement and Liquidation
    • Market-Responsive Pricing
    • Risks
  • USER GUIDE
    • Add Liquidity
    • Pair Liquidity
    • Claim Rewards
    • Swap with Native
  • Build with Native
    • Swap Aggregators
      • Guide
      • FirmQuote Swap APIs
        • GET Orderbook
        • GET Indicative quote
        • GET Firm quote
    • Asset Issuers
      • For Pegged Assets
      • For General Assets
  • Resources
    • Addresses
    • Audits
    • Github
    • System Status
    • Business Source License
    • Media Kit
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  • Health Ratio
  • How Does the Health Ratio Work?
  1. CONCEPTS

Health Ratio

Health Ratio

The Native TAL formula introduces a Health Ratio, which regulates access to the smart pairing liquidity of total available liquidity in Native Credit Pool.

  • Default Value: Initially set at 1.0.

  • Dynamic Adjustment: May change based on factors affecting the on-chain liquidity of an asset.

How Does the Health Ratio Work?

The Health Ratio governs the maximum liquidity an asset issuer can access:

  • When an asset issuer deposits tokens into the Native Credit Pool, they can immediately access liquidity equivalent to the bootstrapped liquidity in the pool.

  • To increase available liquidity, asset issuers can:

    1. Improve their Health Ratio by meeting performance or liquidity criteria.

    2. Contribute more liquid assets to pair with their single-sided LP tokens.

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Last updated 4 months ago