The first version of Unbound will feature Uniswap LPTs from ERC20-Stablecoin pairs such as ETH-Dai, ETH-USDT, etc. These represent stablecoin and ETH in equal ratio, so in simplest terms at 50% loan to value we are minting the value equivalent to the stablecoin keeping ETH as collateral. For example 20 LPT represent $1000, which means $500 will be in ETH and $500 will be a stablecoin. Now when $500 is minted into a our stablecoin keeping $500 in ETH as collateral. Once we understand this part we do realize that during corrections it's the Impermanent loss that risks our financial model as in it’s absence we would never be undercollateralized even if ETH goes to zero.