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Yupana Document Portal
  • Introduction
    • What is Yupana.Finance?
    • Participants
    • FAQ
  • Lending
    • Supplying assets
      • General
    • Borrowing assets
      • General
  • Liquidation
  • Liquidity Risk
    • Yupana Interest Rate
  • โš™๏ธDeveloper space
    • yToken contract methods
      • ๐Ÿ“„Storage overview
      • accrueInterest
      • priceCallback
      • updateInterest
      • ๐Ÿ”ตLending methods
        • borrow
        • enterMarket
        • exitMarket
        • liquidate
        • mint
        • redeem
        • repay
      • ๐Ÿ”ตFA2 Token entrypoints
        • balance_of
        • get_total_supply
        • transfer
        • update_operators
      • ๐Ÿ›‘Admin methods
        • ๐Ÿ“ฅSetup entrypionts
          • setTokenAction
          • setUseAction
        • ๐ŸคนManage entrypoints
          • addMarket
          • setAdmin
          • setBorrowPause
          • setGlobalFactors
          • setTokenFactors
          • updateMetadata
          • withdrawReserve
    • InterestRate contract
      • ๐Ÿ”ตOn-chain views
        • getBorrowRate
        • getSupplyRate
        • getUtilizationRate
      • ๐Ÿ›‘Admin methods
        • setCoefficients
        • updateAdmin
    • PriceFeed contract
      • getPrice
      • receivePrice
      • ๐Ÿ›‘Admin methods
        • setProxyAdmin
        • updateOracle
        • updatePair
        • updateYToken
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Liquidation

The liquidation process occurs when another user repays part of the outstanding amount of the borrower and thus purchases his collateral at a discount.

How much is the liquidation bonus/penalty?

The liquidation bonus (or penalty for borrowers) depends on the collateral asset.

Example: Alice deposits 100 TEZ and borrows 500 tzUSD. The Health Factor drops below 1 and its loan is liquidated. A liquidator can repay up to 50% of a single borrowed amount = 250 tzUSD. In return, the liquidator can claim single collateral which is TEZ ( for example, with a 5% bonus). The liquidator claims 50 TEZ + 2.5 TEZ for repaying 250 tzUSD.

Pay attention: you need to take into account Tezos fees.

Can I participate in the liquidations?

Each user can take part in the liquidation. However, there are a lot of people who want to close someone else's loan, and liquidators have to develop their own solutions in order to liquidate loans and receive bonuses first.

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Last updated 3 years ago