AAVE Health Factor

    Health Factor is a metric that is to measure liquidation tendency of your collateral on your borrowing position. Basically it tells you wether the token you collateralized will be sold or not based on the amount you have borrowed. In this analytics, I will attempt to show the metric of users and their borrowing capability

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    Methodology

    The instruction to chart these data is explained in the SQL

    Result

    The below chart shows the number of user that is allowed to borrow, corresponding to the collateral they have provided. Weth leads the amount of user that has borrowing capability, followed by LINK, WBTC and USDC.

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    So, what parameters affecting the borrowing capabilities of users? This can be analyzed from the Health Factor formula. This is because the Health factor is what determines the liquidation risks.

    So from the formula above, the only constant factor is the Liquidation Treshold. The higher the Liquidation treshold, the less likely youre to be liquidated. SO this may be a factor in order to consider collateral asset for your Borrowing.