Liquidation

Tokens posted as collateral for loans whose value-to-loan ratio has dropped below the desk’s minimum can be acquired at a liquidation bonus by liquidators who repay part of the loan.

Note

Values are calculated in terms of the desk’s base coin which is also the desk’s numeraire. For instance, if the base coin is ETH then all token prices are expressed in ETH for the purpose of calculating the value-to-loan ratio.

liquidate(_user: address, _longable: address, _amount: uint256)

Pay all/part of the liquidatable portion of a user’s loan in exchange for discounted tokens.

• _user: The address whose loan can be liquidated

• _longable: The longable token backing the liquidatable loan

• _amount: The amount of loan the liquidator wants to Pay

The functions below can be used to get information on liquidation and liquidatable loans.

liquidatable(_user: address, _longable: address) → uint256

Return the amount of the loan that _user has taken against _longable that is subject to liquidation. Returns 0 if the loan is not in violation of the desk’s value-to-loan ratio. This is a view function.

• _user: The address whose loan is targeted

• _longable: The ERC20 token (longable) backing the targeted loan

liquidation_bonus() → uint256

Return the desk’s liquidation bonus in basis points (1bps = 0.01%). The liquidator receives x * ( 1 + liquidation_bonus / 10000) worth of tokens for an amount x paid for liquidating a loan. This is a view function.