⏳Liquidation

Help maintain the health of the protocol by taking the role of liquidator and earn rewards.

Users can take the role of Liquidators in the RADE ecosystem, by assisting the protocol mitigate risky loan accounts by partially or fully liquidating the collateral to cover the borrower’s loan defaults.

Market forces can also effect the price of collateralized ETH and decrease the Collateralization Ratio (CR) of the loans (Nests). Such Nests will be listed in the protocols Liquidation table and will be subject to liquidation. Liquidators can initiate the liquidation by providing gas for the liquidation transaction and get liquidation rewards.

Here are the steps to follow in Liquidation.

Step 1 : Navigate to Liquidate section in the dashboard.

Here you can see two tables (as illustrated below). My Nests table depicts all your Nests which are subject to liquidation either by payment defaults or by change in Collateralization ratio (below 150%).

You can either repay your loan to remove your nest from the liquidation tables either by partial repayment, or if you are short of funds, you can partially liquidate your pledged collateral.

Step 2 : To Liquidate a Nest, click on the Liquidate button from the Protocol Nests table and click confirm to proceed.

By clicking on confirm, you agree to spend for gas for the liquidation to go through.

Step 3 : Confirm the transaction in your Metamask wallet to initiate Liquidation.

Step 4 : Wait for the transaction success message as shown below.

Step 5 : The respective Nest will be removed the Liquidation table and respective accounts of the Borrower and the Liquidator will be updated accordingly.

90% of the liquidated collateral will be returned back to the Borrower.

5% of the collateral will be rewarded to the Liquidator as reward.

Remaining 5% will be paid to the platform as liquidation fees.