What are bands in CurveUSD?

In CurveUSD protocol, each band represents a price range (calculated by the protocol) at which the amount of collateral in that band can be liquidated if the oracle price reaches it.

The number of bands can go from 4 to 50, and the width of each one is determined by the Amplification parameter - A.

Formula: 1/A * coll_price Example: A = 100, 1 ETH = $2000 -> Band width = $20.

However, band width isn't fixed as each band uses its collateral price in the calculation.

Choosing a bigger number of bands gives you a wider price range for liquidation, but increases the chances of higher loss (LINK) during soft liquidations (and gas costs).

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