Total Borrowable Amount
The Total Borrowable Amount is a governance-defined cap on how much SUPRA can be borrowed and delegated in each epoch.
- The system calculates the total collateral deposited into vaults.
- This collateral is converted to SUPRA terms and adjusted using the Collateralization Rate.
- Based on this adjusted value, the system borrows SUPRA and delegates it to staking pools.
Two scenarios can occur:
- If adjusted collateral ≤ borrowable cap → SUPRA borrowed matches collateral value.
- If adjusted collateral > borrowable cap → SUPRA borrowed is capped, and APY is diluted (because excess collateral does not generate rewards).
Why it matters: The cap ensures predictable supply, fiscal sustainability, and resilience of network security.