Liquidations

forced liquidations that keep the system healthy

In order to keep USDA sufficiently backed by assets, a mechanism is put into place to liquidate unhealthy Vaults. Once the Liquidation Ratio of a Vault drops below the treshold, the Vault is tagged for liquidation and the assets can be bought at a discount.

Since launch, we've democratised liquidations by releasing a way to participate in them without running complex off-chain infrastructure:

Liquidations happen through the Liquidation Pool.