ARTHtokens in its Stability Pool to absorb the under-collateralized debt, i.e. to repay the liquidated borrower's liability.
110%. The initiator receives a gas compensation (
0.5%of the loan's collateral) as a reward for this service.
ARTHbut the user loses approximately
10%in overall value for each liquidation + fees while repaying the borrowed loan.
ARTHin the Stability Pool, the system tries to cancel as much debt as possible with the tokens in the Stability Pool, and then redistributes the remaining liquidated collateral and debt across all active loans.
liquidateTroves()function, which will check for under-collateralized loans, and liquidate them. Alternatively they can call
batchLiquidateTroves()with a custom list of trove addresses to attempt to liquidate.
$10,000by committing collateral in
ETHwith a CR of
ETHat a price of $3,000
$2700), his current CR% will fall to
Current Collateralization Ratio < Minimum Collateralization Ratio
0.5%of the liquidated loan's collateral.
ARTHin the stability pool that can be used to pay back a loan, the debt & the collateral is redistributed across all the loan holders.