Defi Lending Concepts 2

aavehf.sol

pragma solidity ^0.8.13;

vars.healthFactor = calculateHealthFactorFromBalances(
  vars.totalCollateralInETH,
  vars.totalDebtInETH,
  vars.avgLiquidationThreshold
);

// ... 

/**
 * @dev Calculates the health factor from the corresponding balances
 * @param totalCollateralInETH The total collateral in ETH
 * @param totalDebtInETH The total debt in ETH
 * @param liquidationThreshold The avg liquidation threshold
 * @return The health factor calculated from the balances provided
 **/
function calculateHealthFactorFromBalances(
  uint256 totalCollateralInETH,
  uint256 totalDebtInETH,
  uint256 liquidationThreshold
) internal pure returns (uint256) {
  if (totalDebtInETH == 0) return uint256(-1);

  return (totalCollateralInETH.percentMul(liquidationThreshold)).wadDiv(totalDebtInETH);
}