Citizen Reserve
  • Citizen Reserve
  • How It Works
  • Mechanisms
    • Citizen Banks
    • Borrowing ZUSD Stablecoin
    • Withdrawals
    • Reserve Fund (OLD)
    • Reserve Fund Liquidity Provider Queue and Citizen Bonds.
    • Liquidations
      • Liquidation 1.0) Reserve Fund
      • Liquidation 2.0) Collateral Auction
      • Liquidation 3.0) Slash Auction
    • Redemptions
    • Citizen DAO Governance
    • Citizen DAO Treasury
    • Oracle Module
    • Deployment of Alternative Stablecoin Frameworks
    • Liquidian Bridge
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  1. Mechanisms

Liquidations

PreviousReserve Fund Liquidity Provider Queue and Citizen Bonds.NextLiquidation 1.0) Reserve Fund

Last updated 1 year ago

The purpose of liquidations is to ensure that the circulating supply of ZUSD is always sufficiently collateralized. Should a Bank’s BankValue drop beneath the MCR, and the liquidation parameter has been met, the Bank will be liquidated. There are 3 sequential fail safes for the liquidation process: , , and .

1) Liquidating to the Reserve Fund
2) Collateral Auctions
3) Slash Auctions