Modify Liquidation Parameters

This poll type is yet to be supported by the official Anchor WebApp.

The Modify Liquidation Parameters poll type allows Anchor governance to calibrate parameter values that control the mechanics of collateral liquidation. 5 parameters Safe Ratio, Bid Fee, Max Premium Rate, Partial Liquidation Threshold, and Valid Price Timeframe constitute the control mechanism of liquidating collaterals.

The Safe Ratio is the target risk ratio of a liquidated loan position, defined as the ratio of (Borrow Amount) to (Borrow Limit). A low Safe Ratio value allows for the fast liquidation of collaterals while incurring a high price impact for the collateral, while a low Safe Ratio value enforces liquidations with lower collateral price impact, albeit with slower collateral liquidation.

The Bid Fee parameter determines the commission rate on executed bids, which is used to purchase ANC tokens.

The Max Premium Rate is the maximum rate of premium that bidders can submit.

Partial Liquidation Threshold is defined as the threshold total collateral value to trigger partial collateral liquidations. Loan positions with a total collateral value below this threshold have their collaterals fully liquidated at once, resetting their risk ratio to 0.

Valid Price Timeframe determines the freshness limit for oracle price data. Oracle price data is considered invalid (halts all collateral liquidations) when the most recent price data is older than Valid Price Timeframe.

Parameter Name

Description

Safe Ratio

Targeted risk ratio of a liquidated loan

Bid Fee

Protocol commission on executed bids used to purchase ANC

Max Premium Rate

Maximum bid premium rate value submittable by bidders

Partial Liquidation Threshold

Threshold total collateral value to trigger partial collateral liquidations

Valid Price Timeframe

Time window before the Liquidation Contract considers oracle price data invalid

Parameter Values

Up-To-Date

Parameter Name

Human-Readable Value

Raw Value (In Contract State)

Safe Ratio

80%

0.8

Bid Fee

1%

0.01

Max Premium Rate

15%

0.15

Partial Liquidation Threshold

2,000 UST

2000000000 (uusd)

Valid Price Timeframe

60 seconds

60

At Protocol Genesis

Parameter Name

Human-Readable Value

Raw Value (In Contract State)

Safe Ratio

80%

0.8

Bid Fee

1%

0.01

Max Premium Rate

30%

0.3

Partial Liquidation Threshold

500 UST

500000000 (uusd)

Valid Price Timeframe

60 seconds

60

Poll Format

Field

Description

Optionality

Title

Poll title

Required

Proposal Rationale

Short description of poll rationale

Required

Information Link

External URL for further information

Optional

Safe Ratio

Proposed risk ratio target for a liquidated loan

Optional

Bid Fee

Proposed protocol commission on executed bids used to purchase ANC

Optional

Max Premium Rate

Proposed maximum bid premium rate value submittable by bidders

Optional

Partial Liquidation Threshold

Proposed threshold total collateral value to trigger partial collateral liquidations

Optional

Valid Price Timeframe

Proposed time window before the Liquidation Contract considers oracle price data invalid

Optional

Last updated