Is Aave Arc considered under-collateralized or over-collateralized?

I am trying to determine whether it is considered under-collateralized or over-collateralized. I have searched through the Aave Arc documentation and whitepaper, but I cannot seem to find a clear answer.

Can anyone provide insight into whether Aave Arc is under-collateralized or over-collateralized? Additionally, if there are any relevant resources or documentation that I may have missed, please let me know.