Liquidation Auctions

An auction market to bid on liquidated Vaults collateral.

Overview

The initial launch of Liquidation Auctions comes in the form of a command-line-interface (CLI). Behind the scenes is a descending clock auction, which aggregates all liquidated collateral of a given type (like ATOM) and begins an auction. Any user can bid to purchase those assets, which can then be sold at market prices on external exchanges. Inter Protocol relies on a robust market of third-party bidding to ensure it earns near-market prices for its sales.

Key Features

Stay Alert with Live Auction Updates
Stay Alert with Live Auction Updates
Get real-time access to liquidation auctions taking place once Vaults are live. Explore a range of vaults being liquidated and those on the verge of liquidation.
Customize Your Bids with Ease
Customize Your Bids with Ease
Unleash your bids in IST for the collateral types you desire. Simply provide IST and specify what collateral you’d like, along with a specific price or discount from the “oracle price” for each collateral. Bids by-discount are calculated against the price of collateral at the start of the auction.
Modify and Cancel Bids with Flexibility
Modify and Cancel Bids with Flexibility
Stay in control of your bids with the ability to modify or cancel them anytime (subject to system restrictions). Our command-line-interface (CLI) is what we consider expert mode, but we’re continuously working to make it easier to adjust your bids according to your strategy.
Monitor Your Bids and Purchases in Real-time
Monitor Your Bids and Purchases in Real-time
Keep a close watch on your bidding activity and purchases via the CLI. Access crucial information such as IST traded, ATOM purchased, implied price, Liquidation ID, transaction date, and oracle price, empowering you to make informed decisions in the fast-paced world of liquidation auctions.

Behind The Scenes

  • After the price lock period (i.e. 1 hour - a governed parameter set by the Economic Committee), any vaults whose collateralization ratio is lower than their vault type’s liquidation ratio becomes liquidated. Vault users can similarly monitor their liquidation risk by tracking their vault’s ‘Liquidation Price’ in lieu of the system’s ‘Next Liquidation Price’.

  • The liquidated collateral is then transferred to the auctioneer contract. An auction begins with a starting price calculated at or above the current oracle price.

  • The auction ticks forward, stepping down the price until it has raised the target IST amount which covers the debt, or until the maximum discount is reached.

  • Since the vaults are over-collateralized - byt the end of auction, debt is normally covered with the possibility of excess collateral being returned to vault users less the liquidation penalty, ordered by highest to lowest vault collateralization ratio at time of liquidation. There are some exception flows where this may not be the case. See https://community.agoric.com/t/inter-protocol-vaults-contract-implementations/261/3 for a more detailed explanation of these.

Community Governed

Elected by Agoric BLD stakers, Inter Protocol’s Economic Committee is responsible for maintaining a cohort of Liquidation Auctions parameters to maintain a healthy system.

Start frequency (seconds)
Start frequency (seconds)

how often to start an auction

Clock step (seconds)
Clock step (seconds)

how often to reduce the price

Steps per cycle (steps)
Steps per cycle (steps)

how many steps before closing the auction

Starting rate
Starting rate

discount or markup for starting price in basis points

Discount step
Discount step

amount to reduce prices each time step in BP

Price lock period
Price lock period

time before each auction that prices are locked

Parts at Play

An overview of the system at work.

InterProtocol-FlowChart-NoBG

Get Involved

Vaults and Liquidation Auctions are set to launch in Q2! Follow our social and community channels to stay up to date. Tip: Keep your eyes out for an upcoming community campaign!