Liquidation Queue Contract
The Liquidation contract enables users to submit Terra stablecoin bids for a Cw20-compliant token. Bidders can submit a bid to one of the bid pools; each of the pools deposited funds are used to buy the liquidated collateral at different discount rates. There are 31 slots per collateral, from 0% to 30%; users can bid on one or more slots.
Upon execution of a bid, Cw20 tokens are sent to the bidder, while the bidder's Terra stablecoins are sent to the repay address (if not specified, sent to message sender). A portion of the collateral value liquidated will be given to the address triggering the liquidation (
liquidator_fee).Bids are consumed from the bid pools in increasing order of premium rate (e.g 2% bids are only consumed after 0% and 1% pools are emptied). The liquidated collateral is then distributed to the bidders in the affected pools in proportion to their bid amount. The respective collateral should be claimed by the bidders.
To prevent bots from sniping loans, submitted bids can only be activated after
wait_period has expired, unless the total bid amount falls under the bid_threshold, in which case bids will be directly activated upon submission.Additionally, the Liquidation contract serves as the point of calculation for partial collateral liquidations, where a loan position is liquidated until it reaches a safe
borrow_amount / borrow_limit ratio. The required liquidation amount for each collateral is calculated based on the fed-in loan position's attributes and the state of the bid pools.The oracle contract is responsible for providing the relevant Cw20 token prices. Price data from the Oracle contract are only valid for 60 seconds (
price_timeframe). The Liquidation contract disables bid executions until new price data is fed in to the Oracle contract.Key | Type | Description |
|---|---|---|
owner | CanonicalAddr | Address of contract owner that can update config |
oracle_contract | CanonicalAddr | Contract address of Oracle |
stable_denom | String | Native token denomination for bids |
safe_ratio | Decimal256 | A liability / borrow limit ratio of a loan deemed safe |
liquidator_fee | Decimal256 | Fee rate given to the executor |
bid_fee | Decimal256 | Fee rate applied to all executed liquidations |
liquidation_threshold | Uint256 | Threshold collateral value for partial collateral liquidations |
price_timeframe | u64 | Window of time before oracle price data is considered outdated [seconds] |
waiting_period | u64 | Time after submitted bids can be activated [seconds] |
overseer | CanonicalAddr | Contract address of Overseer |
Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
pub struct InstantiateMsg {
pub owner: String,
pub oracle_contract: String,
pub stable_denom: String,
pub safe_ratio: Decimal256,
pub bid_fee: Decimal256,
pub liquidator_fee: Decimal256,
pub liquidation_threshold: Uint256,
pub price_timeframe: u64,
pub waiting_period: u64,
pub overseer: String,
}
{
"owner": "terra1..",
"oracle_contract": "terra1...",
"stable_denom": "uusd",
"safe_ratio": "0.8",
"bid_fee": "0.01",
"liquidator_fee": "0.01",
"liquidation_threshold": "500",
"price_timeframe": 60,
"waiting_period": 600,
"overseer": "terra1..."
}
Key | Type | Description |
|---|---|---|
owner | String | Address of contract owner that can update config |
oracle_contract | String | Contract address of Oracle |
stable_denom | String | Native token denomination for bids |
safe_ratio | Decimal256 | A liability / borrow limit ratio of a loan deemed safe |
bid_fee | Decimal256 | Fee rate applied to executed bids |
liquidator_fee | Decimal256 | Fee rate given to the executor |
liquidation_threshold | Uint256 | Threshold collateral value for triggering partial collateral liquidations |
price_timeframe | u64 | Window of time before oracle price data is considered outdated [seconds] |
waiting_period | u64 | Time after submitted bids can be activated [seconds] |
overseer | String | Contract address of Overseer |
Can be called during a CW20 token transfer when the Liquidation contract is the recipient. Allows the token transfer to execute a Receive Hook as a subsequent action within the same transaction.
Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum ExecuteMsg {
Receive {
sender: String,
amount: Uint128,
msg: Binary,
}
}
{
"receive": {
"sender": "terra1...",
"amount": "10000000",
"msg": "eyAiZXhlY3V0ZV9tc2ciOiAiYmluYXJ5IiB9"
}
}
Key | Type | Description |
|---|---|---|
sender | String | Sender of the token transfer |
amount | Uint128 | Amount of tokens received |
msg | Binary |
Updates the Liquidation contract's configuration. Can only be issued by the owner.
Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum ExecuteMsg {
UpdateConfig {
owner: Option<String>,
oracle_contract: Option<String>,
safe_ratio: Option<Decimal256>,
bid_fee: Option<Decimal256>,
liquidator_fee: Option<Decimal256>,
liquidation_threshold: Option<Uint256>,
price_timeframe: Option<u64>,
waiting_period: Option<u64>,
overseer: Option<String>,
}
}
{
"update_config": {
"owner": "terra1...",
"oracle_contract": "terra1...",
"safe_ratio": "0.8",
"bid_fee": "0.01",
"liquidator_fee": "0.01",
"liquidation_threshold": "200000000",
"price_timeframe": 60,
"waiting_period": 600,
"overseer": "terra1..."
}
}
Key | Type | Description |
|---|---|---|
owner* | String | Address of new owner |
oracle_contract* | String | New oracle contract address |
safe_ratio* | Decimal256 | New liability / borrow limit of a loan deemed safe |
bid_fee* | Decimal256 | New fee rate applied to executed bids |
liquidator_fee* | Decimal256 | Fee rate given to the executor |
liquidation_threshold* | Uint256 | New threshold collateral value for triggering partial collateral liquidations |
price_timeframe* | u64 | New window of time before price data is considered outdated [seconds] |
waiting_period* | u64 | Time after submitted bids can be activated [seconds] |
overseer* | String | Contract address of Overseer |
* = optional
Whitelist a new collateral token. Can only be issued by the owner.
Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum ExecuteMsg {
WhitelistCollateral {
collateral_token: String,
bid_threshold: Uint256,
max_slot: u8,
premium_rate_per_slot: Decimal256,
}
}
{
"whitelist_collateral": {
"collateral_token": "terra1...",
"bid_threshold": "200000000",
"max_slot": 30,
"premium_rate_per_slot": "0.01",
}
}
Key | Type | Description |
|---|---|---|
collateral_token | String | Address of the collateral token to whitelist |
bid_threshold | Uint256 | Bid amount threshold under which bids will be activated upon submission |
max_slot | u8 | Maximum premium slot |
premium_rate_per_slot | Decimal256 | Premium rate increase for each slot |
Update a whitelisted collateral configuration. Can only be issued by the owner.
Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum ExecuteMsg {
UpdateCollateralInfo {
collateral_token: String,
bid_threshold: Option<Uint256>,
max_slot: Option<u8>,
}
}
{
"whitelist_collateral": {
"collateral_token": "terra1...",
"bid_threshold": "200000000",
"max_slot": 30,
}
}
Key | Type | Description |
|---|---|---|
collateral_token | String | Address of the collateral token to whitelist |
bid_threshold* | Uint256 | Bid amount threshold under which bids will be activated upon submission |
max_slot* | u8 | Maximum premium slot |
* = optional
Submits a new bid for the specified Cw20 collateral to the specified premium slot. Requires Terra stablecoins to be sent beforehand. The premium rate on each slot can be calculated using the whitelisted collateral configuration (
premium_slot * premium_rate_per_slot).Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum ExecuteMsg {
SubmitBid {
collateral_token: String,
premium_slot: u8,
}
}
{
"submit_bid": {
"collateral_token": "terra1...",
"premium_slot": 3
}
}
Key | Type | Description |
|---|---|---|
collateral_token | String | Cw20 token contract address of bidding collateral |
premium_slot | u8 | Premium rate slot to which the bid will be submitted to |
Activates the list of
bids_idx for the specified collateral_token. Activates all bids with expired waiting_period of the bid_idx field is not filled.Rust
JSON
#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum ExecuteMsg {
ActivateBids {
collateral_token: String,
bids_idx: Option<Vec<Uint128>>,
}
}
{
"activate_bids": {
"collateral_token": "terra1...",
"bids_idx": ["123","231"],
}
}
Key | Type | Description |
|---|---|---|
collateral_token | String | Cw20 token contract address of bidding collateral |
bids_idx* | Vec<Uint128> | List of bid unique identifiers |
* = optional
Withdraws specified amount of stablecoins from the specified
bid_idx. Withdraws the entire remaining bid if the amount field is not filled.Rust
JSON
#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum ExecuteMsg {
RetractBid {
bid_idx: Uint128,
amount: Option<Uint256>,
}
}
{
"retract_bid": {
"bid_idx": "123",
"amount": "100000000"
}
}
Key | Type | Description |
|---|---|---|
bid_idx | Uint128 | Bid unique identifier |
amount* | Uint256 | Amount of stablecoins to remove from bid |
* = optional
Claim the liquidated collateral accrued by the specified list of
bids_idx. Claims all the pending collateral from user submitted bids if the bids_idx field is not filled.Rust
JSON
#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum ExecuteMsg {
ClaimLiquidations {
collateral_token: String,
bids_idx: Option<Vec<Uint128>>,
}
}
{
"claim_liquidations": {
"collateral_token": "terra1...",
"bids_idx": ["123","231"],
}
}
Key | Type | Description |
|---|---|---|
collateral_token | String | Cw20 token contract address of bidding collateral |
bids_idx* | Vec<Uint128> | List of bid unique identifiers |
* = optional
Liquidates the sent collateral using the active bids on the bid pools, consuming bids with lower premium rates first. Can only be executed by a whitelisted collateral's
Custody contract. Custody issues this message with fee_address as Overseer's contract address and repay_address as Market's contract address, where stablecoins from the bid is sent to the Market contract to repay a borrower's loan and fees are sent to the Overseer contract to be added to the interest buffer. The liquidator_fee is sent to the liquidator address that originally triggered the liquidation.Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum Cw20HookMsg {
ExecuteBid {
liquidator: String,
fee_address: Option<String>, // Filled as Overseer contract's address
repay_address: Option<String>, // Filled as Market contract's address
}
}
{
"execute_bid": {
"liquidator": "terra1...",
"fee_address": "terra1...", // Filled as Overseer contract's address
"repay_address": "terra1..." // Filled as Market contract's address
}
}
Key | Type | Description |
|---|---|---|
liquidator | String | Address of collateral liquidator to receive liquidator_fee from liquidation |
fee_address* | String | Address to receive bid_fee from liquidation |
repay_address* | String | Address to receive bid stablecoins from liquidation |
* = optional
Gets the Liquidation Contract's configuration.
Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum QueryMsg {
Config {}
}
{
"config": {}
}
Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
pub struct ConfigResponse {
pub owner: String,
pub oracle_contract: String,
pub stable_denom: String,
pub safe_ratio: Decimal256,
pub bid_fee: Decimal256,
pub liquidator_fee: Decimal256,
pub liquidation_threshold: Uint256,
pub price_timeframe: u64,
pub waiting_period: u64,
pub overseer: String,
}
{
"owner": "terra1...",
"oracle_contract": "terra1...",
"stable_denom": "uusd",
"safe_ratio": "0.8",
"bid_fee": "0.01",
"liquidator_fee": "0.01",
"liquidation_threshold": "200000000",
"price_timeframe": 60,
"waiting_period": 600,
"overseer": "terra1..."
}
Key | Type | Description |
|---|---|---|
owner | String | Address of contract owner that can update config |
oracle_contract | String | Contract address of Oracle |
stable_denom | String | Native token denomination for bids |
safe_ratio | Decimal256 | A liability / borrow limit ratio of a loan deemed safe |
bid_fee | Decimal256 | Fee rate applied to all executed bids |
liquidator_fee | Decimal256 | Fee rate given to the executor |
liquidation_threshold | Uint256 | Threshold collateral value for partial collateral liquidations |
price_timeframe | u64 | Window of time before price data is considered outdated [seconds] |
waiting_period | u64 | Time after submitted bids can be activated [seconds] |
overseer | String | Contract address of Overseer |
Gets collateral specific configuration.
Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum QueryMsg {
CollateralInfo {
collateral_token: String,
}
}
{
"collateral_info": {
"collateral_token": "terra1..."
}
}
Key | Type | Description |
|---|---|---|
collateral_token | String | Token contract address |
Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
pub struct CollateralInfoResponse {
pub collateral_token: String,
pub bid_threshold: Uint256,
pub max_slot: u8,
pub premium_rate_per_slot: Decimal256,
}
{
"collateral_token": "terra1...",
"bid_threshold": "5000000000000",
"max_slot": 30,
"premium_rate_per_slot": "0.01"
}
Key | Type | Description |
|---|---|---|
collateral_token | String | Address of the collateral token whitelisted |
bid_threshold | Uint256 | Bid amount threshold under which bids will be activated upon submission |
max_slot | u8 | Maximum premium slot |
premium_rate_per_slot | Decimal256 | Premium rate increase for each slot |
Gets the amount of collaterals that needs to be liquidated in order for the borrower's loan to reach
safe_ratio, based on the fed in borrower's status and the state of all bid pools.Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum QueryMsg {
LiquidationAmount {
borrow_amount: Uint256,
borrow_limit: Uint256,
collaterals: TokensHuman,
collateral_prices: Vec<Decimal>,
}
}
​
pub type TokensHuman = Vec<(String, Uint256)>;
{
"liquidation_amount": {
"borrow_amount": "10000000",
"borrow_limit": "10000000",
"collaterals": [
["terra1...", "100000000"], // (Cw20 contract address, Locked amount)
["terra1...", "100000000"]
],
"collateral_prices": [
"123.456789", // Price of collateral
"123.456789"
]
}
}
Key | Type | Description |
|---|---|---|
borrow_amount | Uint256 | Liability of borrower |
borrow_limit | Uint256 | Borrow limit of borrower |
collaterals | TokensHuman | Held collaterals and locked amounts |
collateral_prices | Vec<Decimal> | Vector of collateral prices |
Key | Type | Description |
|---|---|---|
TokensHuman | Vec<(String, Uint256)> | Vector of (Collateral's token address, Amount of collateral locked by borrower) |
Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
pub struct LiquidationAmountResponse {
pub collaterals: TokensHuman,
}
​
pub type TokensHuman = Vec<(String, Uint256)>;
{
"collaterals": [
["terra1...", "100000000"], // (Cw20 Token address, Required liquidation amount to reach safe_ratio)
["terra1...", "100000000"]
]
}
Key | Type | Description |
|---|---|---|
collaterals | TokensHuman | Calculated amount of collaterals to liquidate |
Key | Type | Description |
|---|---|---|
TokensHuman | Vec<(String, Uint256)> | Vector of (Collateral's token address, Amount that has to be liquidated) |
Gets information about the specified
bid_idx.Rust
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#[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
#[serde(rename_all = "snake_case")]
pub enum QueryMsg {
Bid {
bid_idx: Uint128,
}
}
{
"bid": {
"bid_idx": "123",
}
}
Key | Type | Description |
|---|---|---|
bid_idx | Uint128 | Bid unique identifier |
Rust
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