Liquidation Function

On a liquidation event, the specific pool user borrow position is targeted to be repaid by the desired amount and the return is from the targeted user deposit position.

liquidate (account, repaid(asset, amount), deposited)

There are 3 cases identified:

  • Regular Liquidation

  • Micro Liquidation

  • Insolvency Liquidation

Liquidation function can be triggered at any time for any given parameters. If specific conditions are met, the result would be one (or none) of the liquidation cases.

At the early stage, only the Admin account can trigger liquidation.

Account Loan Limit Used

As the first condition, the targeted account should have Loan Limit Used > 1, meaning all deposited balances, across all given pools provide sufficient collateral for all borrow positions of that account.

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