Liquidation Mechanics

Reliable liquidation mechanics are enabled by tight integration with a variety of liquidity partners. We plan on leveraging the centralised liquidity of DeepBook to perform timely liquidations.

Liquidators can purchase under-collateralized assets at a discount on the DEX, providing an incentive to maintain the health and stability of the lending pool. Liquidations are permissionless, thus effectively creating a market for discounted collateral.