Arkadiko
  • Introduction
  • FAQ
  • Protocol
    • Ecosystem overview
    • Vaults
    • Vault Yield
    • Stakeholders
    • Liquidations
      • Liquidation Pool
    • DIKO
      • Security Module
      • Strategic Raise
      • Governance
    • Incentives and rewards
      • Emission schedule
      • Reward sinks
      • Vault Rewards Launch Event
    • Arkadiko Swap
    • How-To Guides
      • Getting started with Arkadiko
      • Setting up the Stacks Wallet to interact with Arkadiko
      • How To: earn yield on STX with Arkadiko
      • How to earn rewards with USDA
    • Contracts
    • Testnet FAQ
  • 🤖Keepers
    • Introduction
    • Running a job
    • Funding your account
    • Managing jobs
    • Keepers-compatible contracts
  • Events
    • Arkadiko Launch
    • Liquidity Mining
  • Additional Resources
    • Links
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  1. Protocol

Liquidations

forced liquidations that keep the system healthy

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Last updated 2 years ago

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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.