> For the complete documentation index, see [llms.txt](https://docs.resolv.xyz/litepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.resolv.xyz/litepaper/protocol-mechanics/collateral-pool/liquidity-management.md).

# Liquidity Management

Resolv manages short-term liquidity requirements (such as redemptions and exchange margining requirements) by borrowing ETH against staked ETH (wstETH) at on-chain lending protocols. Borrowing specifications are as follows:

| Lending Protocol | Aave v3 (Ethereum Mainnet)                                                                                          |
| ---------------- | ------------------------------------------------------------------------------------------------------------------- |
| Pool Type        | wstETH collateral - ETH borrowing                                                                                   |
| Health Factor    | 2.0                                                                                                                 |
| Other Terms      | If a portion of staked ETH as collateral is higher than 50%, the remaining part is unstaked to redeem borrowed ETH. |