Lesson-13 About aave.Borrow.js

[TimeKeyRoll]

Hi! Could anyone help me understand how mathematics is done here?

I can understand how it is written but not able to grasp how it is getting calculated?
AND
If I could know what is the difference between .toString() and .toNumber()?

 const amountDaiToBorrow =
        availableBorrowsETH.toString() * (1 / daiPrice.toNumber())
    console.log(`You could borrow ${amountDaiToBorrow} DAI`)

[alymurtazamemon]

@TimeKeyRoll

We got the DAI price and here (1 / daiPrice.toNumber()) diving it with 1, so we can know the value of 1 DAI and after it, we simply multiply it with availableBorrowsETH that in result gave us the total DAI token we can buy of worth availableBorrowsETH

[TimeKeyRoll]

NO I understand why we are using .95 ANd I understand health factor as well. I mean where does this specific number came..is this from docs? or Random?

[alymurtazamemon]

@TimeKeyRoll Yes, here is the link LINK

[krakxn]

Explanation:

Put simply, the specific number .95 was arbitrary (for the sake of the liquidation threshold defined above).

[TimeKeyRoll]

I mean i understand healtherFactor but i found later in the video that .95 could be with any number so we dont hit healthFactor under 1. lol
OR in another words we are like getting 95% of total amount. Thanks @krakxn

[krakxn]

Yes, Ali mentioned it above.

[krakxn]

Firstly, .toString() converts to the data-type string. Similarly, .toNumber() converts to the data-type number (int). For example: "1" vs 1

As for the mathematics involved, it is first important to know that we are calculating for the amount of $DAI we can borrow from the $ETH we have deposited.

Formalization:

availableBorrowsETH = available $ETH (to be borrowed)
daiPrice = current price of $DAI

Evaluation:

Refer to Ali's answer (esp. the example), his explanation is elaborate and should be sufficient.

[TimeKeyRoll]

okay @krakxn thankyou very much.