Protocol stability

Ultimately, the purpose of the entire protocol is to manage collateral risks and maintain the value of gigaAssets. As a part of this process, we must always ensure that the total value of user deposits adequately backs the circulating supply of gigaAssets. To achieve this, the protocol monitors portfolio LTV and takes corrective actions to restore it to the target level if LTV deviates outside acceptable ranges. Here are the protocol parameters that define its risk tolerance:

Parameter	Level	Defined by	Description
TargetLTV	Giga CDP	Governance	LTV level the Enjoyoors protocol targets for the entire collateral portfolio
DeltaLTV	Giga CDP	Governance	Deviation bands around the TargetLTV. Protocol strives to keep LTV in the [TargetLTV - DeltaLTV; TargetLTV + DeltaLTV] range.
TokenSupplyCap	Vault	Governance	Determines per asset supply cap for each Vault in every network.

The protocol's stability hinges on two critical areas: portfolio management and gigaAsset supply regulation. Enjoyoors implements a toolset that far surpasses the capabilities of traditional CDP protocols in these fields. This chapter will examine the key factors behind its effectiveness and explore its precise functionality in detail.