EasyFi Network
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EasyFi Network

Liquidation Dashboard is Now Live on EasyFi

Enables Seamless Management of Insolvent Accounts, Incentivization of Liquidators and Investor Asset Protection

We are thrilled to inform all our users that the Liquidation module is NOW LIVE on our app. The module can be reached at the following link https://app.easyfi.network/#/liquidation and is ready for users of the liquidation processes.

Users will know that we launched lending on 16 Nov 2021 with 6 collaterals on our protocol on Polygon Network.

Read here: EasyFi Lending Protocol is Now Live

The launch of these money markets requires strict monitoring of the health of each account that has borrowed assets on the protocol to ensure we are duly intimated about an insolvent account and initiate liquidation proceedings on the same.

The Liquidation dashboard has been made ready for use after ensuring all money market risks have been mitigated in our contracts and after strict audits by Halborn as well our internal team.

In the run-up to the liquidation dashboard launch, we had to integrate certain important processes as well to ensure investor asset protection on EasyFi.

We integrated Chainlink oracles for price feeds, a robust Risk Management System, and finally integrated the liquidation mechanisms for the volatile asset markets.

Understanding Liquidation

  • Liquidation in the crypto lending business is the process of bringing an account to an end and distributing the assets deposited to claimants or liquidators.
  • A borrowing account becomes insolvent — i.e. underwater or distressed — which can happen when the borrow balance exceeds the amount allowed by the collateral factor.
  • In such an event — of an account becoming insolvent — other users have the option of repaying a portion of the outstanding borrowings in that account, in exchange for a portion of the account’s collateral.
  • This is done usually with a liquidation incentive mostly in the form of a discount on the distressed account’s deposited assets.
  • Having an account liquidated is bad because you lose some of your collateral.

Important liquidation parameters

  • Liquidation Incentive: A discount of 8% on market value of distressed assets that are available for liquidation shall be given to anyone who wants to perform liquidation and repay assets to reinstate the account to a healthier state.
  • Close Factor : 50% of market value of distressed assets that are available for liquidation shall be allowed to be liquidated in one transaction at a time.

Dashboard Features

  • Account id: Depicts the Wallet Address from which the user has borrowed an asset
  • Loan to repay — The amount of borrowed assets by the users whose wallet / account has been highlighted and is under consideration for liquidation.
  • Est. Collateral: Depicts the assets supplied by the user as collateral against which a borrow could have been made.
  • Debt Ratio: The health of the account considering multiple factors such as assets supplied, assets borrowed, collateral factor between them, depicted as a ratio.
  • Action: This will be an action button that will lead the liquidator to the next screen for checking the parameters of that particular account.

(Please note: There are no actionable accounts up for liquidation and hence the users may not be able to see any data as of now. The screen will get populated once an account is affected and needs to be liquidated.)

How it works

  • Liquidators can inspect any distressed wallet listed on the main screen (on main screen)
  • On inspection, the liquidators can see the assets supplied and borrowed by the distressed wallet (on following screen/popup)
  • They need to repay the distressed asset in the same token / coin
  • The liquidator can also see the assets they can be paid with the discounts available
  • The Liquidators have the option to get paid in assets of their choice
  • The liquidator can choose to be paid in an eToken, on the main lending dashboard
  • eTokens are credited as per prevailing exchange rates in the respective market and are reflected as supplied balances on their EasyFi lending dashboard

Example If the liquidator has chosen to be paid in eUSDT, the proportional amount of USDT, as per prevailing exchange rates, shall be reflected as the supplied balance in USDT market on EasyFi Main Lending page.

To learn more about $EASY and EasyFi, please go through our whitepaper and other articles on this publication.

Stay tuned for more news & updates on our Telegram channel and join the official group. You can also follow us on Twitter.

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EasyFi is a Layer 2 DeFi Lending protocol for digital assets powered by Matic Network. Taking a strong community-oriented governance approach with $EZ

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EasyFi Network

EasyFi Network

EasyFi is a Layer 2 DeFi Lending Protocol for Digital Assets. Focused on plugging various gaps in DeFi adoption, powered by the efficient Layer 2 Blockchains

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