@tonorbital · Post #917 · 06.11.2024 г., 09:39
💥#Example of Full Liquidation on Aqua Protocol Triggering Liquidation: When the overall liquidation mode is activated. Initial Setup: • TON Value: 1 TON = $2.14 • Alice's Deposit: 1,000 TON, valued at about $2,140 • Minted AquaUSD: Alice mints 1,050 AquaUSD • Initial Collateral Ratio (CR): ~203.81% (calculated as ($2,140 / $1,050) * 100%) 🔻Price Drop: • New TON Price: Falls to $1.30 • Time Open: Position has been open for one year • Accrued Borrowing Rate: 0.5% per year • Borrowing Fee: Alice owes 5.25 AquaUSD for borrowing Updated Values: • Updated Collateral Value: 1,000 TON is now worth $1,300 (1,000 * $1.30) • Updated CR: ~123% (calculated as ($1,300 / (1,050 AquaUSD + 5.25 AquaUSD)) * 100%) ⚖️Liquidation Calculation: • Since CR < 125%, Alice’s position is eligible for full liquidation, allowing 1,050 AquaUSD to be liquidated. 🔄Liquidation Process: • Bob's Action: Bob fully liquidates Alice’s position by repaying 1,050 AquaUSD. • Borrowing Fees: 0.5% of 1,050 AquaUSD equals 4 TON ($5.25), paid to the Aqua Protocol treasury. • Repayment Fee: Since the amount is over $1,000, a 0.5% fee applies, which is another 4 TON ($5.25), also paid to the treasury. • Keeper Fee: Cathy, the Keeper, earns a 3% fee, totaling 24 TON ($31.50). • Liquidator Fee: Bob receives the remaining collateral, totaling 968 TON (1,000 - 4 - 4 - 24), worth $1,258—a profit of 19.8%. 📊Post-Liquidation Status: • Alice's Remaining Debt: Fully cleared to 0 AquaUSD • Remaining Collateral: Fully liquidated to 0 TON As a result, Bob earns a 19.8% premium for successfully executing the liquidation, with 3% of the reward going to the Keeper. By participating in Aqua Protocol as a liquidator, redemption provider, or Keeper, you can help maintain the stability of AquaUSD and protect the system. Always remember the importance of a healthy collateral ratio to reduce the risk of liquidation and maximize rewards within the protocol!
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