YFI-A Liquidations 2.0 Parameters

We are proposing Liquidation 2.0 parameters for YFI-A which is the next vault type in line to have a new liquidation system implemented. Most proposed parameters mirror those of LINK-A since both vault types use 175% collateralization ratio and asset price drawdowns have similar patterns. Explanation for values picked for particular parameter can be found in LINK-A Liq 2.0 post.

The only parameter where we propose a different value is ilk.hole, where 5m DAI value is proposed since the on-chain liquidity (as well as off-chain) for YFI is a bit worse than the one for LINK. Latest on-chain slippage curves for assets backing Maker’s loan portfolio can be found here.

YFI-A Liquidation Parameters:

cut = 0.99

step = 90 seconds

buf = 1.30

cusp = 0.4

tail = 140 minutes

chip = 0.1%

tip = 0

ilk.hole = 5m DAI

ilk.chop = 13%

tolerance = 0.5

Global Auction Parameter:

hole = 100m DAI

7 Likes

Any love for tusd, it will show how it works and we need to liquidate it at some point.

Main issue I can see with yfi is that won’t trigger any test as most of the vaults are healthy.

Tho it is not bad, it is just that we probably want to test some liquidation before the big deep.