@LongForWisdom @MakerMan liquidations could be disabled for this collateral type, with the same justification as USDC-A. The collateral here is more risky, but follows a very predictable and slow interest accumulation on the compound side. You can think of this as a USDC adapter with an added investment strategy, cUSDC is just an implementation detail.
Auction participants deal in internal Maker collateral balances, rather than the external asset. The winner of an auction would have an internal collateral balance which they would have to
exit to real collateral, likely preceded by an
unwind to make the liquidity available, just like any other holder of balances in this adapter. Available compound liquidity is a risk, as noted in the MIP.
The oracle price is given by
nps * usdc_price, the net assets per internal collateral unit multipled by the usdc/dai price (currently 1, as in USDC-A). The code for this will be added soon.
Emergency shutdown is the same as for other collateral types - we reason in terms of internal collateral balances, with a price given at the time of ES. Holders of this collateral after ES then have to
exit via this adapter.