dr. mia von steinkirch, phd 43d100cc70
Create euler.md
2023-02-17 13:39:39 -08:00

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euler


tl; dr


  • protocols with larger amounts of bad debt usually suffer oracle attacks (e.g. mango markets). euler tries to improve existing liquidation mechanism to prevent bad debt.
  • euler presents optimizations on liquidations through debt tokens (dTokens) and suply tokens (eTokens), and offering sliding and muliplying discounts to liquidators (dutch auction)
  • it calculates health scores using risk-adjusted metrics for collateralized assets, by adjusting them against their market value to a more conservative risk-adjusted one.
  • once a user healthy's score has flagged for liquidation, anyone can transfer dTokens and eTokens to their own account, buying both their collateral and debit.
  • soft liquidation: only enough collateral and debt are transferred under liquidation to return to a healthy score.
  • mev resistance comes from the multipliers euler offers to liquidators with deposits in their account.


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