Liquidation

Lendland has added liquidation page, through which any user can liquidate accounts with insufficient collateral, and the repayment amount of each liquidation cannot exceed 50% of the account’s borrowing in a single market. In return, the liquidator will be given a discounted price of 8% to obtain the collateral assets of the account being liquidated.

Liquidation introduction

You can find the liquidation page at the end of the page - Liquidation

Here is an image shows the liquidation page with data of testnet.

1. Liquidation List: Here shows the records of accounts whose collateral is insufficient and need to be liquidated.(Note: if the system has no account needs to be liquidated, no record will be shown here)

2. Recent Liquidations: Here show the liquidation events recently happened.

3. Click a record from Liquidation List, the information will be shown on the right side of the page.

   • Select an asset that you want to help to repay.

   • Enter amount of the asset(here restricts the amount can not greater than 50% of the borrowing amount)

   • Select an asset that you want to receive.(Note: here what you receive is the eToken of the market, so if you liquidate successfully, you can see the received eToken from the Dashboard page, extra asset is in your supplying markets list)

   • Finally, click the Liquidate button to send a liquidation transaction through MetaMask.

When will liquidation happen？

Liquidation occurs when prices change. Due to price changes, the USD value of the user's collateral assets or borrowings has changed, which will lead to a state of liquidation.

What will happen if no user perform liquidations

We have deployed auto liquidation program to perform the liquidations. if no user performs, the program will perform liquidations to keep the system safe and healthy.