CDP Health Explainer

WHAT IT DOES CDP Health Explainer is a read-only tool that analyzes on-chain data for Collateralized Debt Positions (CDPs) and generates AI-powered plain-language explanations of position health status. It reads CDP position state, collateral balances, debt amounts, collateral ratios, liquidation thresholds, health factors, debt ceilings, protocol parameters, oracle price feeds, user CDP addresses, and collateral asset prices. The tool then presents this data alongside an AI-generated explanation of liquidation risk, collateral sufficiency, debt levels, and recommended actions — helping you understand your position's health before adjusting or managing it. HOW TO USE Connect your wallet using the BGWallet bridge and select your target network (Ethereum, Arbitrum, Optimism, or Polygon). Enter your CDP/vault address and the protocol contract address you are using — you vouch for this contract, not the tool. Click "Analyze CDP health" to read on-chain data. The tool displays the CDP address, protocol, health status (Healthy/At risk/Critical), collateral ratio, liquidation threshold, and health factor. Detailed information includes collateral balance, debt amount, collateral asset, debt ceiling, oracle price, and collateral value. A health meter visually indicates the position's overall health score. An AI explanation appears below the on-chain data, describing the position's health status including liquidation risk, collateral sufficiency, debt levels, and recommended actions. The wallet's own signature step still protects you — this explanation is informational only and does not replace reviewing what you approve in your wallet. TECHNICAL MECHANISM The tool uses ethers.js v5.7.2 with the provider from the BGWallet bridge to read on-chain data from the contract you specify. No hardcoded contract addresses are used — you are always in control of which contract you trust. When analyzing CDP health, the tool reads position state by calling view functions on the CDP contract (e.g., getPosition(), getCollateral(), getDebt()). Collateral balances and debt amounts are fetched from the position's storage or accounting contract. Collateral ratios are calculated from collateral value (collateral amount × oracle price) divided by debt amount. Liquidation thresholds are read from protocol parameters (typically 150% or 120% collateralization). Health factors are computed by comparing the current collateral ratio to the liquidation threshold, often expressed as a ratio where >1.0 is safe and