What protects Royco Senior in @avantprotocol's savUSD market?
Of $116.7M avUSD outstanding, $97.1M is staked as savUSD, with $6.67M in Royco tranches.
Two independent layers absorb losses sequentially:
- Avant's Junior capital and reserves
- Royco Junior
28.2% of cover against a 15% minimum: 1.88x what the market needs.
That is the apyUSD market from @apyx_fi. Coverage is the Junior's share of the market which takes any loss before the Senior does.
That cover has been tested. In June apyUSD fell about 21%.
Royco’s apyUSD Senior tranche looks compelling.
At 90% target utilization, @apyx_fi 's Seniors have a ~16.7% first-loss buffer. At 53.45% utilization, it's 28.1%.
STRC would have to fall to roughly $65.86 before exhausting today’s buffer, versus $79.38 at target.
Royco’s apyUSD Senior tranche looks compelling.
At 90% target utilization, @apyx_fi 's Seniors have a ~16.7% first-loss buffer. At 53.45% utilization, it's 28.1%.
STRC would have to fall to roughly $65.86 before exhausting today’s buffer, versus $79.38 at target.
