LUCRA PROTOCOL
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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
Safe Ratio
Targeted risk ratio of a liquidated loan
Bid Fee
Protocol commission on executed bids used to purchase NEP
Max Premium Rate
Maximum bid premium rate value submittable by bidders
Partial Liquidation Threshold
Threshold total collateral value to trigger partial collateral liquidations
Valid Price Timeframe
Time window before the Liquidation Contract considers oracle price data invalid

Genesis Values

Parameter Name
Value
Safe Ratio
85%
Bid Fee
1.5%
Max Premium Rate
30%
Partial Liquidation Threshold
400 nYUSD
Valid Price Timeframe
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