sOHM x Rari Fuse borrowing Liquidation Price Calculator

So you’ve staked your OHM and have just learnt about Rari Capital’s Fuse.

First, a refresher.

What’s Rari Capital’s Fuse got to do with sOHM?

Using Fuse, you can use your sOHM as collateral to borrow stablecoin assets such as USDC and DAI, which you can further use to earn from in the world of DeFi.

Before you jump on this, you need to know your liquidation price.

The liquidation price is the price at which your borrowing position will be liquidated. What will happen when you get liquidated? There’ll be a 12% surcharge. That means, if you borrowed 1000 USDC and you get liquidated, you’ll have 1120 USDC taken from your collateral. Not good.

To prevent this, you should have some buffer.

To do that, you need to know your liquidation price. The folks at Rari Capital have hacked together a simple calculator to help identify your liquidation price.

The calculator

It’s really just a jsfiddle, but it does the job. Before you launch it, you need 3 data points:

• how much sOHM you want to use as collateral
• the current OHM price
• how much you want to borrow in USD

With that, you’re ready to use the calculator.

Here’s the link: https://jsfiddle.net/0ywtghfu/4/

Do your own research, this is not financial advise.

You can also read a post by Rari Capital’s co-founder at https://jaibhavnani.medium.com/an-eli5-on-fuse-for-the-ohmies-4d9fa2c1d0a6 which explains this topic in more detail.