EAST Liquidation Mechanisms are Launching

Hi there, this is the official medium channel of EAST.Finance project — the first stablecoin based on Waves Enterprise mainnet. In our first post we are excited to announce an important milestone in EAST development. Next week we’re going to launch EAST liquidation mechanisms — and it’s a huge step for making EAST a complete algorithmic stablecoin.

What is liquidation? By default, EAST stablecoin is overcollateralized with WEST, native token of Waves Enterprise mainnet. The average collateral rate of an EAST vault is 250%, but it can change depending on market volatility. If the collateral rate drops down to 130%, the vault is subject to liquidation. As a result of liquidation, you will still possess EAST in the vault, but won’t be able to perform any operations — to supply, claim, reissue or close the vault.

To avoid it please check the collateral rate of your vaults before the liquidation launch. You can do it in the EAST client, where current collateral rate of a vault is shown in a green rectangle right below all the basic information:

Liquidation launch is of key importance for EAST tokenomics. This will enable true stablecoin functionality, when the token exchange rate is stable (1 EAST : 1 $) in spite of market volatility.

All the operations with EAST described in our whitepaper won’t change in the new release. We’re also planning to make liquidation available for any user, so he can liquidate vaults that are subject to liquidation with USDap and get WEST from them with a big discount. The instructions will follow in the next post.

The liquidation will start in about a week. The exact time will be announced beforehand in the EAST telegram channel and an update to this post. We’ll also send a reminder via e-mail to all EAST holders.

It’s high time you check your vaults! Subscribe and stay tuned!