Short answer: Loan-to-value (LTV) is how large your loan is compared with your collateral. If Bitcoin's price drops, collateral value falls, LTV rises, and you get closer to liquidation unless you repay or add collateral. Check your live numbers in Xverse Borrow and on Vesu.
LTV in one line
Loan-to-value compares loan value to collateral value. When collateral (WBTC) is worth less in dollar terms, the same loan size means a higher LTV.
Protocols set max borrow, warning zones, and liquidation thresholds. Those figures live only in your Xverse borrow screen and the Vesu UI for the market you use. They can change and differ by asset. Use the numbers on your screen, not blog or chat guesses.
What happens when Bitcoin's price drops
- Your WBTC collateral is worth fewer dollars.
- LTV rises even if you borrowed nothing extra.
- The app or Vesu may show a health or risk indicator (labels vary).
- If the position becomes undercollateralized past the protocol's liquidation rule, collateral can be sold to repay the loan. See What happens if my loan gets liquidated?.
What you can do before liquidation
| Action | Effect |
|---|---|
| Repay part (or all) of the loan | Lowers LTV |
| Add more WBTC collateral | Lowers LTV |
| Borrow less at open | Starts you farther from liquidation |
| Do nothing while BTC falls | LTV rises toward liquidation |
How to borrow stables against Bitcoin in Xverse
- Update to a build that includes Borrow (mobile v2.5+ for Vesu Borrow).
- Open Earn → Borrow (Vesu) when it appears for your account.
- Deposit WBTC on Starknet as collateral (use in-app Convert / Swap. Do not send L1 BTC to a random address).
- Borrow stables against that collateral (primary liquidity is typically USDC-family. Confirm the ticker on screen).
- Read max borrow, liquidation rule, interest, and any supply notes in-app / Vesu before you confirm.
- Monitor the position after Bitcoin moves.
Zest Borrow may appear under Discovery / education. It is not the live borrow market. Live Borrow is Vesu.