Liquidation Mechanics
Liquidation Process in IFICHI
The process of liquidating at-risk vaults is a critical operational element in the IFICHI protocol. When a borrower's collateral value dips below the required collateralization threshold, the protocol permits any BSC account to initiate a liquidation.
Mechanism of Liquidation
Structure: IFICHI's liquidation mechanism is structured similarly to Compound's system, where no auction is involved.
Incentives: For each type of collateral, there's a specified liquidationIncentive. This incentive plays a crucial role in calculating the rewards for liquidators. For example, with a 10% incentive on collateral valued at $5,000, a liquidator would receive $500 in collateral.
Who Can Liquidate: Anyone familiar with the smart contract API can act as a liquidator. To facilitate this, we've developed a liquidation bot that can be deployed on cloud platforms like Google Cloud.
Liquidator Bot
GitHub Repository: Users interested in automating the liquidation process can refer to our liquidation bot available on GitHub.
Pricing Data
Chainlink Dependency: IFICHI relies on Chainlink Price Feeds for accurate and timely price data, leveraging Chainlink's status as a leading oracle network for BSC contracts.
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