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 |
| Targeted risk ratio of a liquidated loan |
| Protocol commission on executed bids used to purchase ANC |
| Maximum bid premium rate value submittable by bidders |
| Threshold total collateral value to trigger partial collateral liquidations |
| 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) |
| 80% | 0.8 |
| 1% | 0.01 |
| 15% | 0.15 |
| 2,000 UST | 2000000000 (uusd) |
| 60 seconds | 60 |
At Protocol Genesis
Parameter Name | Human-Readable Value | Raw Value (In Contract State) |
| 80% | 0.8 |
| 1% | 0.01 |
| 30% | 0.3 |
| 500 UST | 500000000 (uusd) |
| 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 |
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