Liquidations
Hashstack uses a dual-liquidation methodology to ensure loans get liquidated in time, removing bad debt from the protocol. Dual-liquidation involves community-backed liquidations along with protocol-backed liquidations. When a loan becomes liquidable, we allow the community to liquidate. However, if the health factor drops further, protocol-managed liquidation bots come into action to remove loans before they create losses.
The health factor is used to determine when a loan can be liquidated and who can liquidate loans at which state. (More about health factor here).
- 1.Hf > 9% - Health loan
- 2.9% ≥ Hf > 6% - Liquidation call
- 3.Hf ≤ 6% - Liquidable by anyone
- 4.Hf ≤ 4.5% - Liquidable by protocol
Hashstack currently uses pragmaoracle.com (formerly Empiric) as its trusted oracle. The oracle is used at various points in the contracts:
- 1.Determining the amount of leverage allowed based on the collateral and requested loan USDT value.
- 2.Computing if a loan is liquidable.
- 3.Allowing slippage in L3 integrations (Todo).
Last modified 2mo ago