New dApp: Linear Debt Terminator

Dear Linear Community,

We are pleased to inform you that our new dApp, Linear Debt Terminator is now available on the Linear Finance website.

Even though our liquidation contract has been permissionless from day one, some of you were already liquidating positions that had been marked (P-ratio < 200%). The team at Linear has been at work and will now provide users with a Graphical User Interface (GUI) in the form of a new dApp.

Linear Debt Terminator will allow users to help safeguard the protocol and its resistance to any market conditions. With the new GUI, accounts whose p-ratio has fallen below 200% will have 72 hours to restore their P-ratio up to a minimum of 500%. If users fail to do this, community members will be allowed to mark said accounts.

Should the marked accounts fail to restore their p-ratio to 500% or above within 72 hours, then other platform users will be able to liquidate (partially or totally) marked accounts. To liquidate an account, users will need to burn ℓUSD, i.e. repay the marked accounts debt. The liquidated account will incur a 15% penalty fee, with 10% going to the liquidator and 5% to the marker once liquidation takes place.

For partial liquidations, LINA will be liquidated in the following order; staked LINA followed by Locked LINA. For Locked tokens, the LINA scheduled to unlock sooner will liquidate first. Once liquidated, Locked LINA will be transferred to the liquidator’s account and follow the previous owner’s unlock schedule, i.e. after one year from when the rewards were received and locked.

To maintain the healthiness of the protocol, we encourage the community to use Linear Debt Terminator. The easy-to-use interface allows users to liquidate eligible addresses with just a couple of clicks.

About Linear Finance

Linear Finance is a cross-chain compatible, decentralized delta-one asset protocol that allows users to get synthetic exposure to various assets, including cryptocurrency, commodities, and market indices. Users can utilize our cross-chain swap functionality to instantly swap assets across leading blockchain environments and DeFi protocols with unlimited liquidity and zero slippage.

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