About Liquidations

Liquidations are the automatic transfer of collateral from an insufficiently collateralised vault, along with the transfer of that vault's debt, to the Maker protocol.

Auctions are therefore used to sell the transferred collateral for DAI in an attempt to cancel out the debt now assigned to the protocol.

About Liquidations 2.0

This is achieved through Liquidations2.0, which is a Dutch-style auction system, where auction prices start high and drop over time.

This auction system uses DAI for all collateral purchases, meaning that as time passes, the DAI that the protocol is willing to accept for the offered collateral will also fall.

About this interface

This user interface acts as a backstop to democratise access to collateral without having to use command line interfaces.

It is an MVP implementation that over-time will be extended to support all Maker collateral types.