Davos Protocol

Davos Protocol operates as a Collateralized Debt Position (CDP) platform, allowing users to lock up assets such as Liquid Staking Tokens (LSTs), Liquid Restaking Tokens (LRTs), and other reward-bearing assets. Each asset type is assigned a specific Loan-To-Value (LTV) ratio according to its risk profile. For LSTs, the LTV is set at 66%, ensuring that the borrowed DUSD is over-collateralized by 150%. This varying over-collateralization strategy, tailored to the risk characteristics of different assets, bolsters the overall stability of the ecosystem and provides a buffer against market volatility.