Safe borrow usage when collateral is bEth and bLuna

I am reluctant to add bEth to my collateral because I have no idea if it will exceed the 60% maximum and be subject to liquidation. is there an explanation available or can anyone point me to any articles or guidelines that explain how this works? I haven’t been able to find much other than a reference on Twitter to ‘a weighted average’ which only raised more questions for me. Thanks.

it will be a weighted average of both if you add it. Your borrow usage will automatically re-adjust based on this. So, yeah it would be a bit more complex to calculate.

Thanks. So does that mean that if my borrow usage is above 60%, the bEth component won’t get liquidated? Does the weighted average approach convert the combined usage to the new scale (75%, 100%) so that both the bLuna and bEth collateral won’t get liquidated unless usage exceeds 100%. This would mean if you keep your usage below 70% both the bEth and bLuna are safe?

Correct, it is a combined metric to try to make it something complex a bit simpler to manage.

Great, thanks. I wonder if I’m the only one who finds this confusing?

At the time of the changeover from 60% to 80% for bLuna collateral I also had over 64 bEth after the changeover it fell to over 63. This morning my bEth has fallen overnight from over 67 to 66.3. On both occasions my borrow usage was in the 50’s. These are large losses given the bEth price. Any idea what could be causing this. The only solution seems to be to keep the bEth in my wallet or sell and stop accumulating.