Modify Liquidation Parameters
The Modify Liquidation Parameters poll type will allow Lucra 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 will 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 NEP 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 NEP |
| 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 |
Genesis Values
Parameter Name | Value |
| 85% |
| 1.5% |
| 30% |
| 400 nYUSD |
| 60 seconds |
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 NEP | 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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